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On Thursday, Canaccord Genuity maintained its Buy rating on Boston Scientific (NYSE:BSX) shares and increased the price target to $117 from $101. The adjustment follows the company’s robust fourth-quarter earnings, where Boston Scientific reported a 22.4% year-over-year increase in reported revenue and a 19.5% rise in organic revenue. The medical technology company’s revenue of $4.561 billion surpassed both Canaccord’s $4.479 billion estimate and the consensus of $4.418 billion. With a market capitalization of $154.7 billion and impressive annual revenue growth of 17.6%, Boston Scientific has demonstrated strong momentum. According to InvestingPro analysis, the stock appears overvalued relative to its Fair Value, despite its strong performance.
Boston Scientific’s cardiovascular segment has been a significant contributor to its growth, with products like Farapulse and Watchman driving the company’s performance. These segments have not only excelled in the past year but are also expected to continue expanding into new patient populations, providing additional growth opportunities. The company’s strong market position is reflected in its impressive 62% stock return over the past year and robust gross profit margin of 70%.
Despite the positive performance, Boston Scientific provided initial 2025 guidance indicating a slowdown in growth to 12.5%-14.5% in sales and 10%-12% organically. This forecast suggests a deceleration following a year of exceptional expansion, which may present challenges for the company’s stock valuation and future growth prospects.
Canaccord analysts believe that despite the anticipated slowdown, Boston Scientific’s position in the market remains strong. They argue that given the scarcity of high-growth opportunities in the medical technology sector, Boston Scientific could still attract investors. The company’s strategy of supplementing growth through mergers and acquisitions in the medical technology space was noted as a potential buffer against the expected deceleration.
In summary, Canaccord Genuity’s revised price target reflects confidence in Boston Scientific’s ongoing momentum and its ability to navigate the market despite anticipated growth challenges. The firm reiterates its Buy rating and adjusts the price target to $117, up from the previous target of $101.
In other recent news, Boston Scientific Corporation has reported strong fourth quarter results, with both revenue and earnings per share surpassing consensus expectations. Needham analysts noted an improvement in the company’s organic revenue growth, which reached 19.5% in the fourth quarter, up from 18.2% in the third quarter. Despite this, Needham maintained a Hold rating on Boston Scientific, anticipating a gradual slowdown in organic growth during 2025.
On the other hand, Bernstein, Jefferies, Citi, and BTIG analysts have shown a more positive outlook, with each firm raising their price targets for Boston Scientific shares. This follows the company’s significant organic growth and robust forecast for 2025. Boston Scientific’s management has provided guidance for 2025 that exceeds consensus forecasts for both revenue and EPS, based on the strong performance in the previous quarter and the company’s strategic initiatives.
These recent developments reflect a range of perspectives on Boston Scientific’s performance and outlook, with some analysts maintaining a cautious stance while others express more confidence in the company’s future growth.
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