Our $350 target price applies a 28.3x EV/EBITDA multiple to our Q5-Q8 adj. EBITDA estimate of $889mn. We believe the premium WST carries over most of the Tools names under our coverage is warranted given that price and volume are uniquely working together to drive both topline growth and improved profitability as new capacity comes online.

Downside risks to our target price include: 1) slower-than-anticipated conversion onto the HVP product portfolio; 2) greater supply chain diversification results in lower baseline levels of business; 3) lower demand for the increased capacity from recent capex projects; and 4) WST being unable to return to the LRP.