• Evercore ISI upgrades NYSE:WST to "Outperform" with a price target increase to $390.
• Q3 2025 earnings report shows an adjusted EPS of $1.96, beating expectations with a +17.37% earnings surprise.
• Annual profit forecast revised upwards, driven by strong demand for GLP-1 weight-loss and diabetes drug components.

West Pharmaceutical Services, Inc. (NYSE: WST) is a prominent player in the medical equipment industry, specializing in the production of components for healthcare products. The company is known for its Proprietary Products and Contract Manufacturing segments, which have shown strong performance. As of October 23, 2025, Evercore ISI upgraded its rating for WST to "Outperform," with a price target increase from $350 to $390. At the time, WST was trading at $309.35.

The upgrade from Evercore ISI comes on the heels of West Pharmaceutical's impressive third-quarter 2025 earnings. The company reported adjusted earnings per share (EPS) of $1.96, surpassing analyst expectations of $1.68. This represents a significant earnings surprise of +17.37%, as highlighted by Zacks. The company's net sales reached $804.6 million, a 7.7% increase from the previous year, exceeding the expected $787.93 million.

West Pharmaceutical's strong performance is driven by its Proprietary Products and Contract Manufacturing segments. Sales of Proprietary Products rose to $647.5 million, reflecting a 7.7% increase, with a 5.1% rise on an organic basis. Contract-Manufactured Products also saw growth, with sales reaching $157.1 million, up 8.0% and 4.9% on an organic basis. The company's HVP Components business experienced double-digit growth, fueled by demand for GLP-1 products and increased HVP conversion.

The company's robust financial results have led to an upward revision of its annual profit forecast. West Pharmaceutical attributes this positive outlook to the strong demand for its components, which are essential for GLP-1 weight-loss and diabetes drugs. This surge in demand has contributed to better-than-expected financial results, prompting the company to adjust its profit expectations upward.

WST's stock has seen a notable increase, currently priced at $308.33, reflecting an 11.31% rise. The stock has fluctuated between a low of $300 and a high of $322.34 during the day. Over the past year, WST has reached a high of $352.33 and a low of $187.43. The company's market capitalization stands at approximately $22.17 billion, with a trading volume of 996,599 shares on the NYSE.