West Pharmaceutical upgraded to Buy from Hold at Jefferies

Jefferies upgraded West Pharmaceutical to Buy from Hold with a price target of $536, up from $323. The firm says its analysis shows that West’s organic growth is correlated to injectable drug approvals. The FDA approved 27 injectable drugs in 2023, the second best year on record, the analyst tells investors in a research note. Growing biologics approvals support adoption of high-value product components which carry 60%-80% gross margins and GLP-1s are accelerating that shift, contends Jefferies. It thinks this can help West drive double-digit growth over the next three years.