West Earnings: Raising Fair Value After In-Line Results and Guidance

Wide-moat West Pharmaceuticals reported in-line results that support management’s view that it is on the path to recovery. Although the company continues to experience the adverse effects of inventory destocking, the results and management’s guidance suggest that it can soon return to positive annual growth. We are increasing our fair value estimate to $378 per share from $336 due primarily to a more optimistic view of its growth beyond 2028.