Investing.com - Barclays initiated coverage on West Pharmaceutical (NYSE: WST ) with an equalweight rating and a $245.00 price target on Tuesday.

The research firm cited West Pharmaceutical’s strong market position as the entrenched leader in its high-value products business, which Barclays expects to grow at high single digits or better due to increasing volumes in GLP-1 drugs and other biologics, along with tailwinds from changes in regulatory compliance.

Barclays noted that in recent quarters, the company has faced challenges in smaller, non-core businesses, specifically highlighting issues with SmartDose and Continuous Glucose Monitoring manufacturing in West’s Contract Manufacturing segment.

The firm identified oral GLP-1 medications potentially entering the market as early as the fourth quarter of 2025 as the biggest concern for West Pharmaceutical’s business, as a shift in demand to oral formulations could reduce injectable GLP-1 volumes and revenues while potentially extending capacity issues related to the loss of CGM contracts.

Given these overhangs and current valuation that assumes a return to normalized growth over the next year or two, Barclays remains on the sidelines to better understand the various factors affecting the business before taking a more constructive view on the shares.

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