DoD tests AI models that make it easy to switch from vendors like Palantir
On Thursday, Canaccord Genuity maintained its positive stance on Boston Scientific (NYSE:BSX) shares, reiterating a Buy rating and a price target of $117.00. The healthcare equipment giant, with a market capitalization of $146 billion, has demonstrated remarkable momentum with a 35% return over the past year. According to InvestingPro data, the company’s strong market position is reflected in its premium valuation, trading at a P/E ratio of 69. The company’s first-quarter performance for 2025 surpassed expectations, with a reported net revenue of $4.663 billion, marking an 18.2% organic increase. This figure exceeded both Canaccord’s forecast of $4.564 billion and the consensus estimate of $4.572 billion.
Boston Scientific’s growth was attributed to its Electrophysiology (EP) segment, notably driven by Farapulse, which has now secured the number two spot in the worldwide EP market. Additionally, the Watchman device contributed to the revenue surge. InvestingPro analysis shows the company maintains a "GREAT" Financial Health Score, with robust revenue growth of 19.4% over the last twelve months. The adjusted earnings per share (EPS) of $0.75 outpaced the $0.67 estimate agreed upon by both Canaccord and the consensus, thanks to stronger-than-anticipated gross and operating margins.
The updated fiscal year 2025 guidance from Boston Scientific now includes an anticipated $200 million impact from tariffs, which is expected to take effect in the second half of 2025. Despite these challenges, the company plans to mitigate the effects through increased organic sales guidance, targeted discretionary spending cuts, and foreign exchange benefits.
Canaccord highlighted the rarity for a company of Boston Scientific’s size to consistently achieve growth in revenue, margins, and earnings, especially in the current dynamic macro environment. The firm’s confidence in the company is reflected in its reaffirmed Buy rating and price target, anticipating future growth driven by multiple PFA-specific trials, expanded indications for Watchman, and recent mergers and acquisitions. This outlook aligns with broader Wall Street sentiment, as InvestingPro reports 15 analysts have revised their earnings estimates upward for the upcoming period. Discover more insights about BSX and 1,400+ other stocks through comprehensive Pro Research Reports, available exclusively on InvestingPro.
In other recent news, Boston Scientific Corporation reported a strong financial performance for the first quarter of 2025, surpassing both earnings per share (EPS) and revenue forecasts. The company’s EPS reached $0.75, exceeding the consensus forecast of $0.67, while revenue was $4.66 billion, ahead of the anticipated $4.57 billion. This performance highlights the company’s ability to exceed market expectations. Additionally, Boston Scientific has set its full-year 2025 organic revenue growth guidance at 12-14% and adjusted EPS guidance at $2.87-$2.94. The company also announced its plan to launch its Empower leadless pacemaker in the second half of 2025. In terms of strategic moves, Boston Scientific expects to close its acquisition of Sonneby and Entera Oncology during the second quarter of 2025. The company received credit rating upgrades to single A minus from both Standard and Poor’s (NYSE:SPY) and Fitch Ratings. Analyst firms have recognized Boston Scientific’s robust performance, with the company’s stock receiving positive attention following these recent developments.
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