Citigroup maintains West Pharmaceutical Servs at Buy, raises price target to $494 from $412

West Pharmaceutical Services reported Q3 revenue of $874M, up 8.7%, with adjusted EPS increasing 36% to $2.66. Strong demand for biologics and GLP-1 therapies drove growth, particularly in proprietary products. The company raised its 2026 outlook, forecasting revenue of $3.41B-$3.42B and adjusted EPS of $9.38-$9.48. West is also expanding HVP capacity and maintaining dividend and share repurchase programs.

Evercore ISI Group raised its price target for West Pharmaceutical Services to $480 from $440, maintaining an Outperform rating. This implies a 15.2% upside from the Oct 29 close of $416.67.

West Pharmaceutical Services reported Q3 2026 earnings, highlighting 16.6% growth in proprietary products, driven by HVP components and GLP-1 treatments. Gross margins expanded by 310 basis points due to a shift toward high-value products. The company raised full-year organic growth guidance to 11.3%-11.6% and announced an 18% dividend increase. Management discussed strategic shifts, including divestitures and capital investments in HVP capacity.

West Pharmaceutical Services reported 3Q 2026 revenue of $874.5M, up 8.7% YoY, and net income of $214M, up 52.9% YoY. EPS was $3.02, up 57.3% YoY. Organic sales grew 11.9%, driven by biologics and GLP-1 demand, while West Vantage sales declined 6.6% due to a contract expiration. The company sold its SmartDose 3.5mL product line to AbbVie.

West Pharmaceutical Services reported Q3 adjusted EPS of $2.66, up 35.7%, on sales of $874.5M, up 8.7%. The company raised full-year EPS guidance to $9.38-$9.48. Shares hit a 52-week high. Growth driven by premium products and GLP-1 demand, with strong profitability and disciplined investment.

West Pharmaceutical Services reported Q3 2026 earnings with record margins, but faced revenue declines in the West Vantage segment and a planned divestiture headwind. Free cash flow decreased 5% year-over-year. CEO Michel Lagarde emphasized strong organic growth prospects and high M&A criteria. GLP-1 revenue growth is expected to decelerate due to tough comparisons. The company anticipates continued margin expansion and plans to invest in high-return HVP areas.