Investor interest in West Pharmaceutical Services (WST) has been rising as demand for GLP-1 therapies expands, spotlighting the company’s injectable drug containment and delivery systems while also drawing attention to capacity and pricing concerns.

West Pharmaceutical Services’ share price has gained 36.18% over the past 90 days and 21.70% year to date, while the 1 year total shareholder return of 51.56% points to strong momentum rather than a short lived move.

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With West Pharmaceutical Services now trading at $336.39 and sitting roughly 6.7% below the average analyst price target of $358.79, the key question is whether the recent GLP 1 optimism leaves meaningful upside or if the market is already pricing in future growth.

Most Popular Narrative: 6.2% Undervalued

Compared with West Pharmaceutical Services’ last close at $336.39, the most widely followed narrative points to a fair value of $358.79, framing a modest upside case that leans on GLP 1 exposure and high value product mix.

The continued growth in GLP-1s, which made up about 7% of total revenues in the first quarter, and the company's ability to capitalize on significant opportunities in this market could drive revenue and earnings growth. The anticipated high single-digit growth rate for Biologics HVP components in the second half of 2025, despite initial destocking challenges, shows potential for revenue acceleration and earnings improvement.

Curious how a relatively small slice of GLP 1 revenue, a richer mix of high value components, and a higher future earnings multiple fit together in this fair value story? The narrative stitches those moving parts into one set of long term revenue, margin and earnings assumptions that support the current target, without needing rapid fire growth across the whole business.

In this framework, analysts anchor on moderate annual revenue expansion, a step up in profit margins and a future P/E that sits below the current Life Sciences average, all discounted back at 7.88% to land on $358.79 as a fair value marker for West Pharmaceutical Services.

Result: Fair Value of $358.79 (UNDERVALUED)

However, the West Pharmaceutical Services narrative still leans heavily on GLP 1 and high value component demand, while tariffs and shifting customer orders could pressure margins and growth assumptions.

Another View: What Multiples Say About West Pharmaceutical Services

While the analyst narrative frames West Pharmaceutical Services as about 6.2% undervalued, the current P/E of 43.8x tells a tougher story. That multiple sits above the Global Life Sciences average of 35.2x, the peer average of 38.7x, and a fair ratio estimate of 21.3x, which points to a rich valuation and less room for error if expectations change.

For investors, that gap means paying a higher price today on the assumption that earnings and sentiment stay supportive, rather than leaving much cushion if growth or margins come in below forecasts. The key question is which reference point you trust more when judging West Pharmaceutical Services.

Next Steps

With the mixed signals around West Pharmaceutical Services, do you feel the current optimism is fully justified, or only part of the picture? Act while the data is fresh and pressure test the key positives for yourself by reviewing the 2 key rewards

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.