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On Wednesday, Boston Scientific Corporation (NYSE:BSX), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $156.2 billion, received a reiterated Buy rating and a $125.00 price target from analysts at Citi. The company recently announced the cessation of its Acurate neo2 and Acurate Prime TAVR valve sales worldwide. According to InvestingPro data, 21 analysts have revised their earnings upward for the upcoming period, suggesting strong confidence in the company’s prospects despite this development. The decision to discontinue these products arose from increased clinical and regulatory demands discussed with regulators, which would have been required to sustain global market approvals and to secure new regional approvals.
Despite the discontinuation, Boston Scientific’s TAVR revenue outside the United States (OUS) showed growth, reaching $214 million in 2024, marking an increase of 10.9%. This contributes to the company’s impressive overall revenue growth of 19.36% in the last twelve months. However, efforts to introduce the product to the U.S. market faced challenges, and OUS sales began to decline following unfavorable clinical data from the Acurate IDE study presented at the Transcatheter Cardiovascular Therapeutics conference in 2024.
Boston Scientific management acknowledged that the termination of the TAVR valves would affect gross margins. Nonetheless, the company remains confident in meeting its second quarter and full-year 2025 sales and earnings per share (EPS) guidance, as reported and on an organic basis. Citi analysts consider the company’s decision to halt the TAVR valve sales as a strategic move in resource management.
Furthermore, Citi’s analysis suggests that the move could be beneficial for other companies in the sector, with Buy-rated Edwards Lifesciences (NYSE:EW) and Medtronic (NYSE:MDT) potentially standing to gain from Boston Scientific’s market exit. The firm maintains its positive outlook on Boston Scientific, reaffirming its status as a Top Pick in the medical technology space. InvestingPro analysis reveals the company maintains a "GREAT" financial health score, with strong cash flows and moderate debt levels. Discover more insights and 13 additional ProTips with an InvestingPro subscription.
In other recent news, Boston Scientific has reported strong first-quarter results, leading to an increase in its sales and earnings forecast for 2025. The company projects a year-over-year sales increase of 15% to 17% and earnings per share in the range of $2.87 to $2.94. Erste Group has initiated coverage on Boston Scientific with a Buy rating, reflecting optimism about its innovative products and positive financial outlook. Additionally, Moody’s Ratings has upgraded Boston Scientific’s credit rating to A3, citing strong operating performance and revenue growth. The company has also decided to discontinue its ACURATE neo2 and ACURATE Prime Aortic Valve Systems due to increased regulatory requirements, although it still expects to meet its financial targets for the year. Meanwhile, Needham has reaffirmed its Buy rating on Boston Scientific, with a price target of $115, based on expectations for products like FARAPULSE and WATCHMAN to exceed consensus estimates. These developments indicate Boston Scientific’s strategic adjustments and continued focus on growth and innovation.
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