West Pharmaceutical Services Inc

WST: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$782.00	Hxnld	Bvgdkpgxhq

Wide-Moat West Maintains Margin, Meets Top-Line Expectations in Q1; $280 FVE Intact

Aaron Degagne

Apr 28, 2022

West Pharma demonstrated impressive pricing power in the first quarter of 2022 and managed to maintain margin despite inflationary headwinds. There is no change to our $280 fair value estimate and wide moat rating. After a bit of a roller coaster over the past year, West's shares have come back to their level from a year ago, and the stock now appears fairly valued in our view. The market’s negative reaction to earnings (down over 5%) doesn’t seem to be justified by any changes to the fundamental view of West’s long-term cash flows.

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