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On Thursday, RBC Capital Markets maintained a positive outlook on Boston Scientific (NYSE:BSX) shares, as analyst Shagun Singh increased the price target to $120 from $116, while keeping an Outperform rating on the stock. This adjustment follows Boston Scientific’s announcement of their first-quarter 2025 results, which showed a significant 20% year-over-year organic day-adjusted revenue growth, outperforming end-market expectations by 11.70 percentage points. The company’s earnings per share (EPS) also saw a robust increase of 34% compared to the same period last year. The company, now valued at nearly $148 billion, maintains a "GREAT" financial health score according to InvestingPro analysis, with 15 analysts recently revising their earnings expectations upward.
Boston Scientific’s strong performance has prompted the company to revise its 2025 guidance upward by 200 basis points, now expecting year-over-year growth of 12-14%. This guidance uplift comes despite the company absorbing $200 million in tariffs, which accounts for a 120 basis point impact on sales. The market responded favorably to the news, with Boston Scientific stock climbing approximately 5% on Thursday, continuing its impressive 35.67% gain over the past year. InvestingPro subscribers can access 14 additional key insights about Boston Scientific’s performance and valuation metrics through the platform’s comprehensive Pro Research Report.
In their commentary, RBC Capital analysts highlighted the company’s ability to navigate macroeconomic challenges, such as tariffs, without derailing its growth trajectory. They cited Boston Scientific’s momentum and manageable macro risks as key factors contributing to the stock’s rise. The analysts anticipate that Boston Scientific will continue to be one of the top-performing large-cap companies within the MedTech sector for the current year and beyond.
Looking ahead to the rest of 2025, RBC Capital’s analysis suggests that Boston Scientific is positioned to achieve double-digit growth in both revenue and EPS. This optimism is based on the company’s consistent execution, ongoing innovation, and strength in end-markets, which are expected to grow at an 8.5% weighted average market growth rate. Additionally, Boston Scientific is projected to experience meaningful margin expansion, with operating margins increasing by 50 to 75 basis points.
In summary, RBC Capital’s revised price target reflects confidence in Boston Scientific’s continued ability to outperform expectations and deliver sustained growth, even in the face of external economic pressures. The analysts underscored their reiteration of an Outperform rating, with a raised price target of $120, up from the previous target of $116.
In other recent news, Boston Scientific reported a robust financial performance for the first quarter of 2025, exceeding both earnings and revenue forecasts. The company’s earnings per share (EPS) reached $0.75, surpassing the consensus forecast of $0.67, while net revenue was reported at $4.663 billion, marking an 18.2% organic increase. This exceeded Canaccord Genuity’s forecast of $4.564 billion and the consensus estimate of $4.572 billion. The growth was largely driven by the company’s Electrophysiology segment and the Watchman device. Canaccord Genuity maintained its Buy rating on Boston Scientific, with a price target of $117.00, citing the company’s consistent growth in revenue, margins, and earnings. Despite anticipated challenges from tariffs expected to impact the fiscal year 2025, Boston Scientific plans to mitigate these effects through increased organic sales guidance and strategic spending cuts. The company has also set its full-year 2025 organic revenue growth guidance at 12-14% and adjusted EPS guidance at $2.87-$2.94. Additionally, Boston Scientific is preparing for the launch of its Empower leadless pacemaker in the second half of 2025, reflecting its focus on innovation and expanded market presence.
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