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On Wednesday, Needham analysts upgraded Boston Scientific stock, traded on the New York Stock Exchange under the ticker (NYSE:BSX), from Hold to Buy, setting a new price target of $113.00. The upgrade reflects a more optimistic outlook on the company’s competitive position and growth prospects. The $139 billion market cap company has demonstrated robust financial health, earning a "GREAT" rating according to InvestingPro metrics, with impressive revenue growth of 17.6% over the last twelve months.
The analysts at Needham have revised their view on the potential impact of percutaneous left atrial appendage closure (PFA) competition on Boston Scientific, finding it less threatening than previously thought. This assessment is backed by recent findings from their latest electrophysiologist (EP) survey.
The survey also indicates the possibility of increased sales for Boston Scientific’s WATCHMAN device due to its concomitant use, which could lead to near-term revenue growth. Additionally, the company’s ongoing CHAMPION trial, expected to conclude in the first half of 2026, is anticipated to provide further long-term benefits.
The analysts highlighted Boston Scientific’s recent acquisitions of Bolt Medical (TASE:BLWV) and SoniVie as new avenues for expansion starting in 2025. Notably, Bolt Medical’s Intravascular Lithotripsy (IVL) system received clearance for use above the knee on March 25, 2025, marking a significant milestone for the company.
Boston Scientific shares have receded from their all-time high, leading analysts to consider the current valuation more reasonable. This reassessment, combined with the positive factors outlined, has prompted the upgrade to a Buy rating.
In other recent news, Boston Scientific Corporation has shown strong financial performance and strategic growth initiatives. The company has had its credit rating upgraded to ’A-’ from ’BBB+’ by both S&P Global Ratings and Fitch Ratings, reflecting robust operational performance and substantial enhancements in free cash flow. Boston Scientific’s revenue grew by 17.6% in 2024, exceeding both its initial guidance and Fitch’s expectations, driven by successful product launches like Farapulse and Watchman devices. The company is projected to continue generating solid top-line growth and strong free cash flow, with expectations of EBITDA margins improving to around 28%.
RBC Capital Markets reiterated its Outperform rating for Boston Scientific, maintaining a price target of $116.00. Analysts highlighted the company’s resilience against economic disruptions, such as tariffs, and its strong position in the medical technology market. The firm’s analysis suggests potential for revenue growth and operating margin expansion, supported by the uptake of its Pulmonary Fibrosis Ablation technology and other strategic initiatives. Boston Scientific’s focus on innovation and acquisitions has been a key driver of its growth, with expectations of continued success in high-growth markets.
The company’s financial policies remain conservative, maintaining adjusted net leverage under 2.5x while pursuing moderate-size tuck-in acquisitions. Fitch anticipates that share repurchases will become a more significant use of free cash flow, which grew by over 50% in 2024. These developments underscore Boston Scientific’s commitment to maintaining a strong financial profile and expanding its product portfolio through strategic acquisitions and innovations.
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