West Pharma Approves $1B Buyback as BofA Sees 24% Upside
West Pharmaceutical Services approved a new $1B share buyback after exhausting its prior program. BofA cut its price target from $370 to $300 yet kept a Buy rating, citing a strong FY26 outlook and faster growth in non-GLP-1 products supporting over 24% upside.
1. New $1B Share Repurchase Program
On February 17, West Pharmaceutical Services' board authorized a new share repurchase program of up to $1 billion, replacing the prior program that was fully utilized before its December 31, 2025 expiration. This move underscores the company’s commitment to returning capital and offers increased flexibility for future share buybacks.
2. BofA Lowers Price Target to $300
On February 13, BofA analyst Michael Ryskin cut his price target on West Pharmaceutical Services from $370 to $300 while maintaining a Buy rating. The adjustment reflects a conservative valuation multiple amid sector headwinds, despite an FY26 outlook that beat consensus and accelerated non-GLP-1 product expansion.
3. Hedge Fund Favoritism Highlighted
West Pharmaceutical Services has been named one of the top 10 life sciences stocks by hedge funds, emphasizing strong institutional interest. The endorsement follows the company's robust year-end performance and strategic capital return initiatives, bolstering its appeal among sophisticated investors.