West Pharmaceutical Services Inc
WST: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$883.00 | Kzbs | Lkmqkqpdh |
Wide-Moat West Maintains Margin, Meets Top-Line Expectations in Q1; $280 FVE Intact
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.