West Pharmaceutical Services (WST) has a solid position in the injectable-drug containment market with "sticky recurring revenue," and the stock price has dropped to an "attractive entry point" after underwhelming Q4 results and 2025 guidance, Deutsche Bank said Friday in a note.
The stock is currently trading close to pre-pandemic levels and is at the lower end of the range over the past five to 10 years, the note said. Deutsche Bank's base case suggests a 20% internal rate of return over two years with potential returns ranging from high single digits to mid-30% based on execution and exit conditions.
"The stock can re-rate as investors regain confidence in execution on the 2025 guidance and West's return to its long-range plan," the note said.
Deutsche Bank upgraded the stock to buy from hold and lowered its price target to $250 from $275.
West Pharmaceutical shares rose 11% in recent Friday trading.
Price: 221.74, Change: +22.62, Percent Change: +11.36
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。