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Exton, Pennsylvania-based West Pharmaceutical Services, Inc. (WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products. It is valued at a market cap of $22.4 billion.
This healthcare company has considerably outperformed the broader market over the past 52 weeks. Shares of WST have soared 54.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.4%. Moreover, on a YTD basis, the stock is up 15.2%, compared to SPX’s 8.8% rise.
Zooming in further, WST has also notably outpaced the State Street Health Care Select Sector SPDR ETF’s (XLV) 14.8% rise over the past 52 weeks and 3.2% YTD drop.
On Apr. 23, shares of WST soared 12.9% after delivering better-than-expected Q1 results. The company’s revenue increased 21% year-over-year to $844.9 million, surpassing the consensus estimate by 8.5%. Moreover, its adjusted EPS of $2.13 topped analyst expectations of $1.68. Robust demand for its high-value product (HVP) components and operational improvements in its manufacturing facilities contributed to its upbeat performance.
For the current fiscal year, ending in December, analysts expect WST’s EPS to grow 18% year over year to $8.60. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a "Strong Buy," which is based on 12 “Strong Buy,” one "Moderate Buy,” and three “Hold” ratings.
The configuration is slightly more bullish than a month ago, with 11 analysts suggesting a “Strong Buy” rating.
On May 7, Kallum Titchmarsh from Morgan Stanley maintained a “Hold” rating on WST, with a price target of $315.
The mean price target of $350.62 suggests a 10.3% premium to its current price levels, while its Street-high price target of $400 implies a 25.8% potential upside.
