West Pharmaceutical Services (NYSE:WST) Stock Price Expected to Rise, Evercore ISI Analyst Says

Key Points

• Evercore ISI raised its price target for West Pharmaceutical Services from $275.00 to $350.00, indicating a potential upside of 33.63%.
• The company reported earnings of $1.84 per share, exceeding estimates and showing a 9.2% revenue increase year-over-year.
• West Pharmaceutical Services currently holds a consensus rating of "Moderate Buy" from analysts, with an average target price of $330.71.
• As of recent reports, institutional investors own 93.90% of the company's stock, reflecting strong institutional support.

West Pharmaceutical Services (NYSE:WST - Free Report) had its price target boosted by Evercore ISI from $275.00 to $350.00 in a research note published on Friday,Benzinga reports. The brokerage currently has an outperform rating on the medical instruments supplier's stock.

Several other analysts have also issued reports on the company. Stephens upgraded West Pharmaceutical Services to a "strong-buy" rating in a research note on Monday, April 21st. Citigroup restated a "buy" rating on shares of West Pharmaceutical Services in a research note on Thursday, May 22nd. Finally, Barclays started coverage on West Pharmaceutical Services in a research note on Tuesday, June 24th. They issued an "equal weight" rating and a $245.00 price objective on the stock. Two investment analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $320.71.

West Pharmaceutical Services Stock Down 5.7%

NYSE WST traded down $15.78 during trading hours on Friday, hitting $263.32. 1,493,189 shares of the company traded hands, compared to its average volume of 777,491. The business's 50-day moving average is $220.56 and its 200-day moving average is $238.54. West Pharmaceutical Services has a twelve month low of $187.43 and a twelve month high of $352.33. The company has a debt-to-equity ratio of 0.08, a quick ratio of 2.03 and a current ratio of 2.77. The stock has a market capitalization of $18.92 billion, a price-to-earnings ratio of 39.42, a P/E/G ratio of 5.93 and a beta of 1.09.

West Pharmaceutical Services (NYSE:WST - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The medical instruments supplier reported $1.84 EPS for the quarter, beating the consensus estimate of $1.51 by $0.33. West Pharmaceutical Services had a return on equity of 18.81% and a net margin of 16.48%. The firm had revenue of $766.50 million during the quarter, compared to analysts' expectations of $725.11 million. During the same period in the prior year, the firm posted $1.52 earnings per share. The business's quarterly revenue was up 9.2% compared to the same quarter last year. Sell-side analysts anticipate that West Pharmaceutical Services will post 6.62 earnings per share for the current year.

West Pharmaceutical Services Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 19th. Shareholders of record on Wednesday, November 12th will be issued a $0.22 dividend. The ex-dividend date of this dividend is Wednesday, November 12th. This is a boost from West Pharmaceutical Services's previous quarterly dividend of $0.21. This represents a $0.88 annualized dividend and a yield of 0.33%. West Pharmaceutical Services's payout ratio is currently 12.57%.

Hedge Funds Weigh In On West Pharmaceutical Services

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in West Pharmaceutical Services by 2.7% in the 1st quarter. Vanguard Group Inc. now owns 9,231,721 shares of the medical instruments supplier's stock valued at $2,066,798,000 after acquiring an additional 244,259 shares in the last quarter. Brown Advisory Inc. increased its stake in shares of West Pharmaceutical Services by 28.1% in the 1st quarter. Brown Advisory Inc. now owns 3,268,478 shares of the medical instruments supplier's stock valued at $731,747,000 after purchasing an additional 716,442 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of West Pharmaceutical Services by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 1,778,940 shares of the medical instruments supplier's stock valued at $581,209,000 after purchasing an additional 38,757 shares during the last quarter. Durable Capital Partners LP increased its stake in shares of West Pharmaceutical Services by 146.8% in the 1st quarter. Durable Capital Partners LP now owns 1,573,119 shares of the medical instruments supplier's stock valued at $352,190,000 after purchasing an additional 935,721 shares during the last quarter. Finally, APG Asset Management N.V. grew its position in West Pharmaceutical Services by 8.7% during the 1st quarter. APG Asset Management N.V. now owns 1,562,139 shares of the medical instruments supplier's stock worth $323,766,000 after acquiring an additional 124,737 shares during the last quarter. 93.90% of the stock is owned by institutional investors and hedge funds.

West Pharmaceutical Services Company Profile

West Pharmaceutical Services, Inc designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products.