West Pharmaceutical initiated with a Buy at Citi

Citi initiated coverage of West Pharmaceutical (WST) with a Buy rating and $400 price target West is a provider of packaging and injectable solutions and services for the pharmaceutical industry, the analyst tells investors in a research note. The firm says the company is a “well-entrenched player” in the space for premium enhancements and devices, which the company labels as high value products. Citi sees “significant growth opportunities” for HVPs driven by a shift to biologics, stricter regulatory environment, and GLP-1s. Additionally, it sees “significant runway” from ongoing capacity expansions specifically geared towards higher-margin products and believes the company’s near-term margin headwinds from these expansions are understood.