Mizuho raises Boston Scientific target to $130, maintains Outperform

On Thursday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Boston Scientific (NYSE:BSX) shares, raising the price target to $130 from $110 while maintaining an Outperform rating. The revision follows a series of positive developments reported by the medical device company, which has grown to a market capitalization of $154.71 billion. According to InvestingPro data, the stock is currently trading above its Fair Value, with 9 analysts recently revising their earnings estimates upward.

Boston Scientific’s global FARAPULSE sales have surpassed the $1 billion mark, with significant contributions from the U.S. and EMEA regions. This sales milestone reflects the strong market adoption of the product, contributing to the company’s impressive 17.61% revenue growth and robust 69.91% gross profit margin. Additionally, the company has received favorable early feedback from doctors on the combination of the FaraWave and Opal mapping system, with some early conversions already happening in the U.S.

In the first half of 2025, Boston Scientific is set to present Phase 2 ADVANTAGE AF data, which is anticipated to support an expansion of the label for persistent atrial fibrillation by the end of the year. This data presentation is poised to further bolster the company’s product portfolio.

Furthermore, the expected late 2024 readout of the OPTION trial and the establishment of a DRG code are contributing to the early volume growth of the WATCHMAN FLX device. These developments are seen as drivers for a potential re-acceleration of the product’s market presence.

Mizuho’s analysis suggests that with FARAPULSE still in the early stages of market penetration, WATCHMAN FLX well-positioned for growth, and the potential for strategic mergers and acquisitions, Boston Scientific’s long-range plan to achieve an 8-10% top-line growth from 2024 to 2026 appears achievable. The firm’s revised numbers support their new Street-high price target of $130. For deeper insights into Boston Scientific’s growth potential and over 30 key financial metrics, check out the comprehensive Pro Research Report available on InvestingPro, which provides expert analysis and actionable intelligence for informed investment decisions.

In other recent news, Boston Scientific has been in the spotlight following its robust fourth-quarter earnings. 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. Canaccord Genuity maintained its Buy rating on Boston Scientific shares and increased the price target to $117 from $101. Meanwhile, Needham maintained its Hold rating, citing potential challenges ahead despite the company’s strong performance.

Bernstein analysts increased the price target for Boston Scientific shares from $110.00 to $121.00, while reiterating an Outperform rating. Jefferies analyst Matthew Taylor also raised the price target to $120 from the previous $100 while maintaining a Buy rating. Citi analyst Joanna Wuensch increased the price target for Boston Scientific shares to $122 from the previous target of $107, while reiterating a Buy rating on the stock.

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. Nevertheless, the analysts believe that the company’s position in the market remains strong and continues to attract investors.

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