West Pharmaceutical Services Inc.: Good Vibes: Feedback from Management Meetings

研报英文原文证据摘录

West Pharmaceutical Services Inc.: Good Vibes: Feedback from Management Meetings

upside risk to numbers (incl. our initiation e = Morgan Stanley Research estimates

report back in December), our only real hesitation around the WST story related to Quarterly EPS ($)

2026e 2026e 2027e 2027e

valuation. That said, a premium can be comfortably justified relative to the broader Quarter 2025 Prior Current Prior Current

life sciences peer group when execution tracks as it has done for the past couple of Q1 1.45 - 2.13a - 2.23

Q2 1.84 - 2.09 - 2.26

quarters. We increase our PT on WST to $325 (from $315), which implies a 25x Q3 1.96 - 2.17 - 2.49

2026E EV/EBITDA multiple. Q4 2.03 - 2.26 - 2.58

e = Morgan Stanley Research estimates, a = Actual Company reported data

Nearer-term tone was notably positive, in our view: We've spent a lot of time

discussing the cyber security attack with investors since it was announced, so the

news of no anticipated financial impact last week (both quarter and full year) was

well received broadly. During meetings, the team acknowledged there would be

some incremental cost associated with the resolution processes (incl. facilities

running overtime and the hiring of Palo Alto's Unit 42 for support), though

insurance was highlighted as an offset to some of the impact here. Shipping/

receiving capabilities were back fully functioning within days, though manufacturing

systems took slightly longer to bring up online, all of which are now resorted.

Beyond this, management talked to very strong visibility into Q2 performance,

where a bullish tone was struck around GLP-1 and non-GLP-1 customers, which we

cover more below. We also sensed upside risk to the messaging around pricing,