Stock Price & Analysis

Based on the provided data and recent market activity, here's my analysis of WST stock:

Technical Analysis

The stock has experienced significant volatility recently, with a sharp decline followed by a rebound:

• Recent drop of 33.22% after Q4 results and weaker 2025 guidance
• Bounced back 11.2% in the latest trading session
• Currently trading at $214.73, showing signs of stabilization

Fundamental Analysis

Key Financial Metrics (2023):

• Revenue: $2.95B (+2.2% YoY)
• Net Income: $593.4M (+1.3% YoY)
• Gross Margin: 38.28% (declined from 39.36%)
• ROE: 21.32% (declined from 23.11%)

Recent Events Impact

The company recently reported Q4 results and provided weaker-than-expected 2025 guidance, which triggered the significant sell-off. However, the stock has shown resilience with a strong rebound, suggesting the market may have overreacted to the guidance.

Analyst Perspective

KeyBanc analyst Paul Knight maintains a Buy rating with a price target of $325, implying an upside potential of approximately 51% from current levels.

Recommendation

SELL - Based on:

1. Deteriorating margins and ROE metrics
2. Weaker 2025 guidance suggesting continued challenges
3. Technical indicators showing bearish momentum despite recent bounce
4. Current price levels still above key support zones

The stock may experience further volatility as the market digests the weaker guidance. Consider waiting for stabilization before establishing new positions.

Based on the provided data and market context, here's a comprehensive price prediction analysis for WST stock in 2025:

Technical Analysis

The stock is currently showing significant weakness in technical indicators:

• RSI-14 at 18.98 indicates severely oversold conditions
• MACD is negative with -19.32, showing strong downward momentum
• Stock is trading below both 5-day (276.53) and 10-day (303.79) moving averages

Current Price Status

• Latest trading price: $214
• 52-week range: $265 (low) to $413.56 (high)
• Current price represents a significant breakdown below support levels

Fundamental Factors

• Revenue forecast for FY2024: $2.89 billion
• Net profit margin: 17.03%
• ROE: 17.71%
• Strong balance sheet with debt-to-equity ratio of 7.55%

Price Target Scenarios for 2025

Based on technical and fundamental analysis:

1. Bullish Case ($290-310):

• Successful rebound from oversold conditions
• Continued growth in pharmaceutical sector
• Improvement in profit margins

2. Base Case ($240-260):

• Stabilization at current levels
• Moderate industry growth
• Maintained profit margins

3. Bearish Case ($190-210):

• Further technical deterioration
• Market volatility impact
• Margin pressure

Most Likely Scenario: Base Case ($250)

• Technical indicators suggest a potential bounce from oversold levels
• Strong fundamentals provide support
• Current market conditions favor stabilization

The stock is expected to find support around $225 (Fibonacci S1 level) and gradually recover toward $250 by mid-2025, representing about 16.8% upside from current levels.

The S1 support level for WST Stock is $209.16 ,The R1 resistant level for WST Stock is $312.65.

As of the end of day on 2025-02-21, the price of WST Stock was $210.

The target price for WST Stock according to analyst rating is 384.50, with the highest price target at 400.00 and the lowest at 355.00. Analysts have a Strong Buy rating on WST Stock overall.

The market cap of WST is $15.2B.

Based on the provided data and recent market movements, here's a concise analysis of WST's valuation:

Current Market Status WST is currently trading at $214.73, showing significant volatility with a -33.8% decline over the past week.

Valuation Analysis

• P/E ratio increased from 30.75x (2022) to 44.68x (2023)
• EV/EBITDA rose from 19.12x to 30.01x
• P/S ratio expanded from 6.18x to 8.99x
• P/B ratio increased from 6.50x to 8.98x

Recent Performance Drivers

• Q4 2024 results and weaker-than-expected 2025 guidance triggered a 33.22% stock decline
• Revenue growth has moderated with 2023 showing only 2.2% growth to $2.95 billion
• Net margin decreased from 20.1% (2022) to 17.4% (2024)

Technical Indicators

• RSI-14 at 18.98 indicates severely oversold conditions
• MACD showing bearish momentum with -19.32
• Trading well below all major moving averages (SMA 20, 60, 200)

Conclusion WST appears fairly valued at current levels after the recent sharp decline. The stock's valuation multiples have expanded significantly in 2023, but the recent sell-off has brought valuations closer to historical averages. The company faces near-term headwinds from inventory management issues and slower growth, but maintains strong market position in injectable drug administration solutions.

West Pharmaceutical Services, Inc. is a global manufacturer that is engaged in the design and production of technologically advanced, integrated containment and delivery systems for injectable drugs and healthcare products. The Company operates through two segments: Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers packaging, containment solutions, and drug delivery products, along with analytical lab services and other integrated services and solutions, primarily 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. This segment manufactures customer-owned components and devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products.

Based on the provided data and recent market events, here's a price prediction analysis for WST stock by 2030:

Technical Analysis

WST stock has experienced significant volatility, dropping from around $400 to $214.73 recently. The stock is currently showing signs of oversold conditions with RSI at 18.98, suggesting a potential technical rebound.

Fundamental Drivers

The company recently reported weaker-than-expected 2025 guidance, causing a 33.22% tumble in stock price. However, the stock showed resilience by rebounding 11.2% in recent trading, indicating market's renewed confidence in its long-term prospects.

2030 Price Target Prediction

Based on technical analysis and fundamental factors, WST's 2030 price target is projected at $485-495, representing a compound annual growth rate (CAGR) of approximately 12.5% from current levels. This projection is supported by:

1. The company's dominant position in injectable drug administration solutions
2. Expected growth in the pharmaceutical packaging market
3. Historical price patterns and technical support levels

The stock is likely to reach this target through a series of consolidations and upward movements, with key resistance levels at $336.71 and $371.06 based on Fibonacci projections.

WST has a total of 10600 employees.