West Earnings: First-Quarter Revenue Slightly Better Than Expected; Maintaining Our Fair Value

Wide-moat West Pharmaceutical’s first quarter was slightly better than we expected, with reported sales and organic sales down only 3% year on year instead of our forecast of a 6%-7% decline. At first glance, we are maintaining our fair value estimate of $336, and shares declined closer to our fair value after earnings. We continue to think the company’s long-term story is attractive and has potential upside, depending on the impact that the GLP-1 obesity drug industry will have on West’s long-term sales.