/West%20Pharmaceutical%20Services%2C%20Inc_%20phone%20and%20site-by%20T_Schneider%20via%20Shutterstock.jpg)
With a market cap of $16 billion, West Pharmaceutical Services, Inc. (WST) is a global leader in injectable drug packaging and delivery systems, serving pharmaceutical and biotech companies. Based in Exton, Pennsylvania, the company designs and manufactures critical containment and administration solutions, including rubber stoppers, seals, syringes, and self-injection devices.
WST shares have substantially lagged behind the broader market over the past year. WST has plunged 40.1% over the past year compared to the S&P 500 Index’s ($SPX) 17% gains. This year, WST has dipped 32.8%, while SPX is up 1.3% on a YTD basis.
Narrowing the focus, WST has also underperformed the First Trust Indxx Global Medical Devices ETF’s (MDEV) marginal gains over the past year and a 2.8% rally in 2025.
Feb. 13, West Pharmaceutical shares plunged 38.2% after announcing disappointing Q4 2024 results and weak full-year guidance. While it beat its earnings and revenue expectations, the stock fell sharply after issuing weaker-than-expected FY25 guidance of 2%-3% organic growth due to continued headwinds like foreign exchange challenges, below Street's forecasts.
For the current fiscal year, ending in December, analysts predict WST’s adjusted EPS will drop 3.6% year over year to $6.51. The company’s earnings surprise history is mixed. It surpassed analysts’ bottom-line estimates in three of the past four quarters while missing on another occasion.
WST stock has a consensus “Strong Buy” rating overall. Among the ten analysts covering the stock, nine recommend “Strong Buy,” and one advises a “Hold” rating.
This configuration is more bullish than a month ago when the stock had eight “Strong Buy” rating.
On Feb. 14, KeyBanc analyst Paul Knight cut West Pharmaceutical's price target from $470 to $325 due to lowered FY2025 estimates but maintained an “Overweight” rating.
WST’s mean price target of $308.89 represents a premium of 40.3% to current price levels. Meanwhile, the Street-high target of $375 suggests a robust upside potential of 70.3%.
