Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– West Pharmaceutical- West PharmaceuticalServices Inc. (WST.N) Services Inc. (WST.N)

Healthy Selection of Durable Themes Driving Topline but Valuation Rich

PRICE TARGET $365.00 EQUAL-WEIGHT THESIS

Our PT is based on a 25x EV/2027E EBITDA multiple, a premium to biologic enabling peers. WST holds a dominant position as the

We believe this is justified given market leading positions across product categories, larger global market leader in the containment and

skew to more attractive end markets, and margin upside opportunity. We also believe WST's delivery of injectable medicines, with an

generally solid track record warrants merit in the multiple. estimated 70-75% market share in high-

value elastomers for complex biologics. The

$380.42 company is uniquely positioned to benefit

Consensus Price Target Distribution $310.22 $447.00 from a number of trends in the healthcare

MS PT space, including the growth of GLP-1

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates injectables, the development of biologics

and biosimilars, and increasing regulatory

requirements such as Annex 1 in Europe. On

RISK REWARD CHART AND OPTIONS IMPLIED PROBABILITIES (12M) the margins front we see near term upside

from the resolution of the SmartDose

manufacturing processes and a broader mix

USD shift to HVP. However we view WST's

premium valuation prices in higher

performance expectations and could gate

600 upside.

$415.00(+16.74%)$415.00$415.00(+16.74%)(+16.74%) ProbProbProb (>415.00)~26.4%(>415.00)~26.4%(>415.00)~26.4%

450 Consensus Rating Distribution

$365.00(+2.68%)$365.00$365.00(+2.68%)(+2.68%)

$355.48$355.48$355.48 ProbProbProb (>365.00)~39.8%(>365.00)~39.8%(>365.00)~39.8% 95% Overweight

300 5% Equal-weight

0% Underweight