WST Should I Buy
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West Pharmaceutical Services Inc (WST) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, optimistic revenue outlook, and confidence in the pharmaceutical market outweigh the short-term headwinds from GLP-1 shifts. Hedge fund buying and a positive technical setup further support this decision.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 57.102, suggesting no overbought or oversold conditions. Moving averages are converging, showing potential stabilization. Key resistance levels are at 255.36 and 263.009, with support at 242.98 and 230.599. The stock is trading above its pivot level, which is a positive sign.
Hedge funds are significantly increasing their buying activity, up 196.32% over the last quarter.
Q4 2025 financials show revenue growth of 7.51% YoY and EPS growth of 2.82% YoY.
Positive profit forecast for 2026, with revenue expected to grow between $3.215 billion and $3.275 billion.
Executives report stable customer behavior and confidence in both injectable and oral GLP-1 product demand for 2026.
Analysts have lowered price targets due to concerns about GLP-1 shifts from injectable to oral formats.
Stock has dropped 15% recently due to concerns about oral GLP-1 competition.
Options data shows a higher put-call ratio, indicating bearish sentiment in the short term.
In Q4 2025, revenue increased by 7.51% YoY to $805 million. Net income rose by 1.54% YoY to $132.1 million. EPS grew by 2.82% YoY to 1.82, and gross margin improved to 37.75%, up 3.31% YoY. The company has provided an optimistic revenue outlook for 2026.
Analysts have mixed views. Barclays maintains an Equal Weight rating with a reduced price target of $265. Jefferies and Evercore ISI remain positive, with price targets of $295 and $320, respectively, despite acknowledging headwinds from GLP-1 shifts. Nephron Research upgraded the stock to Buy with a $367 price target in December 2025.
