FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Thursday, RBC Capital Markets reiterated its Outperform rating for Boston Scientific (NYSE:BSX) with a steady price target of $116.00. RBC Capital’s analysts provided insights following a meeting with Boston Scientific’s executive leadership at the company’s headquarters. The meeting with Dan Brennan, Executive Vice President and CFO, and Art Butcher, Executive Vice President and President of MedSurg & APAC, centered on the company’s resilience and growth prospects.
The analysts highlighted Boston Scientific’s relative immunity to broader economic disruptions, such as tariffs and potential Medicaid cuts, due to its exposure to disposable medical products. The company’s current procedure environment and the uptake of its Pulmonary Fibrosis Ablation (PFA) technology are reportedly strong, with expectations for continued strength in the first quarter and looking ahead to 2025. This outlook is supported by the company’s impressive 17.61% revenue growth in the last twelve months and strong financial health score from InvestingPro.
Boston Scientific’s visibility into long-term growth was emphasized, as the company is actively working on catalysts and exploring new market opportunities. These include Intravascular Lithotripsy (IVL), Renal Denervation (RDN), and additional PFA indications. RBC Capital’s analysis suggests that these strategic moves could lead to significant financial benefits for the medical device manufacturer. The company’s strong execution is reflected in its 49.36% stock price return over the past year. For deeper insights into Boston Scientific’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which includes 14 additional ProTips and extensive financial metrics.
The firm anticipates potential for revenue growth, a 1.5 times earnings per share (EPS) drop-through, and an operating margin (OM) expansion of more than 300 basis points, reaching over 30%. Additionally, the analysts expect Boston Scientific to generate strong free cash flow (FCF). These financial projections underpin the reiteration of the Outperform rating and the $116 price target for Boston Scientific’s stock. The company’s current EBITDA of $4.27B and gross profit margin of 68.41% demonstrate its strong operational efficiency.
In other recent news, Boston Scientific Corporation has seen significant developments. The company had its credit rating upgraded to ’A-’ from ’BBB+’ by both S&P Global Ratings and Fitch Ratings, citing strong performance and robust operational metrics. S&P Global highlighted Boston Scientific’s solid organic growth and strong free cash flows, while Fitch noted enhanced revenue growth and a conservative financial policy. Additionally, Boston Scientific’s revenue in 2024 reached $16.7 billion, marking a 17.6% increase from the previous year, driven by successful product launches like Farapulse and Watchman.
In other developments, Stifel analysts raised their price target for Boston Scientific shares to $120, maintaining a Buy rating. The analysts expressed confidence in the company’s 2025 financial guidance and highlighted potential for positive revisions in top-line estimates. Meanwhile, Edwards Lifesciences (NYSE:EW) received a Hold rating from Jefferies, with a price target of $71, amid cautious optimism about its U.S. Transcatheter Aortic Valve Replacement revenue growth. Lastly, Boston Scientific announced that board member Charles J. Dockendorff will not seek re-election at the 2025 Annual Meeting, with the company evaluating potential new directors.
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