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Investing.com - Raymond (NSE:RYMD) James reiterated a Strong Buy rating on Boston Scientific (NYSE:BSX) with a price target of $121.00 on Monday. The healthcare equipment giant, currently valued at $154.65 billion, is trading near its 52-week high of $107.53, having delivered a strong year-to-date return of 16%.
The firm expects the discontinuation of the Acurate product line to remove "a small portion of the upside" and create noise in second-quarter results and 2025 guidance, but believes this impact is already reflected in market sentiment. According to InvestingPro analysis, Boston Scientific maintains a GREAT financial health score, with robust gross margins of 68.45%.
Raymond James anticipates second-quarter upside for Boston Scientific, primarily driven by strong performance in the company’s Electrophysiology and Watchman product lines, with additional upside expected from the rest of the portfolio in the second half of the year.
The firm highlighted Boston Scientific as one of the top two fastest-growing companies in the medical technology sector, alongside Intuitive Surgical (NASDAQ:ISRG), and expects this growth trajectory to continue through 2026.
Raymond James justified its Strong Buy rating by pointing to Boston Scientific’s teens revenue growth and visible operating leverage, which the firm believes warrants a premium multiple for the stock.
In other recent news, Boston Scientific is poised for significant developments as it prepares to release its second-quarter earnings report. The company anticipates revenue growth of 17.5-19.5% and organic growth of 13-15%, with adjusted earnings per share expected to range from $0.71 to $0.73. Analysts at TD Cowen project that Boston Scientific will exceed these estimates and may raise its full-year earnings guidance. Additionally, the company has gained FDA approval for a label expansion of its Watchman devices, now including post-ablation patients, which could increase its patient base by 1-2 million globally.
The approval of Boston Scientific’s Farapulse system for persistent atrial fibrillation marks another milestone, supported by positive data from the Advantage AF study. Piper Sandler maintains an Overweight rating on the stock, citing Farapulse’s strong revenue generation and the potential for substantial market expansion. The firm estimates that Boston Scientific’s sales could see organic growth of 230 basis points in 2026 and 330 basis points in 2027. These developments suggest Boston Scientific is strategically positioned for continued growth in the medical device sector.
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