Deutsche Bank upgrades West Pharmaceutical to Buy after selloff

Deutsche Bank upgraded West Pharmaceutical (WST) to Buy from Hold with a price target of $250, down from $275. The company’s Q4 results and a 2025 guide “underwhelmed the Street,” the analyst tells investors in a research note. However, the firm the stock off 38% on the event and the current price offers an attractive entry point for a “durable compounder,” the analyst contends. Deutsche says West shares are now trading close to pre-pandemic levels and at the lower end of its historical trading range over the last 5-10 years. Its base case scenario points to a 20% internal rate of return over a two year holding period with outcomes ranging from high-single digit to mid-30% returns contingent upon execution and exit multiple.