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On Tuesday, RBC Capital Markets reiterated its positive stance on Boston Scientific Corporation (NYSE:BSX), maintaining an Outperform rating and a price target of $116.00. As a prominent player in the Healthcare Equipment & Supplies industry according to InvestingPro, the company’s favorable position is supported by strong financial metrics and expected net income growth this year. The firm’s analyst highlighted the company’s favorable position as it approaches its first-quarter earnings report, citing potential gains from the adoption of its PFA (pulmonary vein isolation ablation) products and its resilience in the current economic climate. The analyst noted that Boston Scientific’s exposure to high acuity procedures, lack of capital expenditure exposure, and focus on mostly single-use disposables could help it withstand macroeconomic pressures, though the impact of tariffs remains to be seen.
Boston Scientific’s manufacturing operations, with 50% taking place outside the United States serving a global customer base, are a point of consideration regarding the ongoing tariff situation. The company operates with a moderate level of debt, and InvestingPro analysis shows its cash flows can sufficiently cover interest payments. The company is seen as having the potential to outperform its 2025 financial guidance, driven by the adoption of PFA and Watchman devices. The analyst’s research indicates that medical technology utilization trends were positive in the first quarter, with strong demand for interventional procedures as catheterization laboratory expansions continue.
The analyst considers Boston Scientific a "quality with catalyst" investment, expecting the company to experience durable growth. This optimism is further supported by the company’s weighted average market growth rate (WAMGR) and upcoming catalysts through the end of the decade, including product innovations such as Watchman, intravascular lithotripsy (IVL), renal denervation (RDN) therapies, and expanded indications for PFA.
The projection of double-digit sales and earnings per share growth for Boston Scientific in 2025 is underpinned by its track record of innovation. InvestingPro data reveals strong returns over both the last decade and five years, with analysts predicting continued profitability this year. The analyst anticipates that the company may exceed expectations and raise its financial forecasts, finding the current valuation attractive despite trading at high earnings and EBITDA multiples. There is potential for the stock to surpass its previous peaks due to projections of a significantly higher growth profile compared to the past. RBC Capital Markets’ reiteration of its Outperform rating reflects confidence in Boston Scientific’s upside potential to the $116 price target. For deeper insights into BSX’s valuation and growth metrics, including 13 additional ProTips and comprehensive financial analysis, explore the full Pro Research Report available on InvestingPro.
In other recent news, Boston Scientific has reported strong financial performance and strategic advancements. The company’s issuer credit rating was upgraded to ’A-’ from ’BBB+’ by both S&P Global Ratings and Fitch Ratings, reflecting its robust growth and financial stability. Boston Scientific achieved a 17.6% increase in revenue for 2024, surpassing initial guidance and expectations, driven by successful product launches like Farapulse and continued momentum in its cardiovascular franchise. Analysts at RBC Capital reiterated an Outperform rating for Boston Scientific, highlighting the company’s resilience to economic disruptions and strong growth prospects, with a price target of $116.00.
Additionally, the company is projected to continue generating significant free cash flow, with expectations of reaching at least $3 billion annually. Boston Scientific’s strategic approach includes ongoing acquisitions, with plans for $4 billion-$5 billion in annual acquisitions to support growth. The company also announced that board member Charles J. Dockendorff will not seek re-election at the 2025 Annual Meeting of Stockholders, with no current plans for a replacement. These developments underscore Boston Scientific’s strong market position and continued focus on innovation and growth.
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