West Pharmaceutical earnings selloff overdone, says William Blair

William Blair says West Pharmaceutical’s fundamentals are intact after the “mixed” Q3 print. Results beat estimates but the company reduced 2023 revenue guidance due to slower than expected restocking from large pharma and generic customers, the analyst tells investors in a research note. The firm says West delivered double-digit organic growth in the proprietary products base business, despite slower restocking at some large pharma and generic customers that should be resolved by early 2024. With restocking headwinds transitory, Blair views the post-earnings selloff yesterday as overdone. It keeps an Outperform rating on the shares.