Nico Chen, an analyst from DBS, has initiated a new Buy rating on West Pharmaceutical Services (WST).
Nico Chen has given his Buy rating due to a combination of factors that place West Pharmaceutical Services in a favorable position within the pharmaceutical packaging industry. West is recognized as a global leader in elastomer solutions for drug packaging, a sector that is expanding alongside the rise in global medication dosages. The company’s extensive customer base, comprising over 90% recurring revenue, speaks to its established foothold and the high costs and regulatory hurdles associated with switching suppliers, which further secures its position.
Additionally, Nico Chen emphasizes West’s involvement with key players in the weight loss drug market and the potential expansion of these drugs into new therapeutic areas, such as cardiovascular and chronic kidney diseases. This expansion could significantly increase the market size and demand for West’s packaging products. The anticipated positive developments in the weight loss drug sector are expected to act as catalysts for West’s share price, supporting the Buy rating and a target price of $460, which reflects a substantial premium over the historical average forward P/E ratio.
Chen covers the Healthcare sector, focusing on stocks such as West Pharmaceutical Services, Sinopharm Group Co, and Shandong Weigao Group Medical Polymer Co. According to TipRanks, Chen has an average return of -4.8% and a 46.15% success rate on recommended stocks.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
West Pharmaceutical Services (WST) Company Description:
West Pharmaceutical Services, Inc. manufactures and markets pharmaceuticals, biologics, vaccines and consumer healthcare products. It operates through the following business segments: Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers proprietary packaging, containment and drug delivery products, along with analytical lab services, to biologic, generic and pharmaceutical drug customers. The Contract-Manufactured Products segment serves as a fully integrated business, focused on the design, manufacture and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. The company was founded by Herman O. West on July 27, 1923 and is headquartered in Exton, PA.
Read More on WST:
