Technical Analysis:
WST experienced a significant drop of 33.22% after reporting Q4 results and providing weaker-than-expected 2025 guidance. However, the stock showed strong recovery on Friday, rising 7.84% to $214.73 despite broader market weakness.
Current technical indicators show:
- RSI(14) at 18.98 indicates severely oversold conditions
- MACD is negative at -19.32 with bearish divergence
- Stock trading below all major moving averages (5,10,20,60,200-day)
Fundamental Catalysts:
- Deutsche Bank upgraded WST from Hold to Buy with a $250 price target
- Q4 earnings beat expectations with EPS of $1.82 vs $1.72 estimate
- However, 2025 guidance disappointed:
- Revenue guidance: $2.88-2.91B vs $3.04B expected
- Adjusted EPS guidance: $6.00-6.20 vs $7.44 expected
Price Projection for Next Week:
Based on technical analysis and recent events:
- Support levels: $201.86 (Friday's low)
- Resistance levels: $223.44 (Friday's high)
- Fibonacci pivot points suggest next resistance at $225.52
Trading Recommendation:
SELL with target price of $195-200 range for next week because:
- Despite Friday's bounce, negative momentum from earnings disappointment likely to continue
- Weak 2025 guidance suggests continued pressure on margins
- Technical indicators show bearish trend despite oversold conditions
- Stock remains below all major moving averages indicating sustained downward pressure
Technical Analysis:
WST experienced a significant drop of 33.22% after reporting Q4 results and providing weaker-than-expected 2025 guidance. However, the stock showed strong recovery on Friday, rising 7.84% to $214.73 despite broader market weakness.
Current technical indicators show:
- RSI(14) at 18.98 indicates severely oversold conditions
- MACD is negative at -19.32 with bearish divergence
- Stock trading below all major moving averages (5,10,20,60,200-day)
Fundamental Catalysts:
- Deutsche Bank upgraded WST from Hold to Buy with a $250 price target
- Q4 earnings beat expectations with EPS of $1.82 vs $1.72 estimate
- However, 2025 guidance disappointed:
- Revenue guidance: $2.88-2.91B vs $3.04B expected
- Adjusted EPS guidance: $6.00-6.20 vs $7.44 expected
Price Projection for Next Week:
Based on technical analysis and recent events:
- Support levels: $201.86 (Friday's low)
- Resistance levels: $223.44 (Friday's high)
- Fibonacci pivot points suggest next resistance at $225.52
Trading Recommendation:
SELL with target price of $195-200 range for next week because:
- Despite Friday's bounce, negative momentum from earnings disappointment likely to continue
- Weak 2025 guidance suggests continued pressure on margins
- Technical indicators show bearish trend despite oversold conditions
- Stock remains below all major moving averages indicating sustained downward pressure