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On Wednesday, TD Cowen reaffirmed its Buy rating and $115.00 price target for Boston Scientific (NYSE:BSX) shares, which currently trade at $104.98, near their 52-week high of $107.17. According to InvestingPro data, the company maintains a "GREAT" financial health score, reflecting its strong market position with a $155.11 billion market capitalization. The firm’s analyst highlighted the company’s decision to halt global sales of its Acurate neo2 and Acurate Prime TAVR systems and to cease pursuit of FDA approval for these products. Boston Scientific made this strategic move following discussions with regulators that revealed the need for additional clinical and other requirements to maintain and gain approvals for the Acurate systems. The company determined that the resources and investments required to meet these new standards would be too burdensome.
Boston Scientific CEO Mike Mahoney expressed that discontinuing the Acurate valve systems was a "disappointing" but "right decision." He addressed factors that influenced the company’s choice, including the impracticality of conducting extensive registries that would place additional strain on hospitals. Mahoney emphasized that the company has numerous other investment opportunities beyond the TAVR market that promise better returns.
The analyst noted that the discontinuation of the Acurate systems has a minimal impact on their financial model. In 2024, sales of Acurate in the EMEA region surpassed $200 million, showing double-digit growth. This aligns with the company’s broader growth trajectory, as InvestingPro data shows impressive revenue growth of 19.36% over the last twelve months, with 21 analysts recently revising their earnings estimates upward. The model did not account for any potential U.S. TAVR revenue due to the uncertain commercial outlook in the U.S. following the IDE trial outcomes. The analyst believes that their projections are in line with the broader market consensus and does not expect any significant changes to the consensus estimates for Boston Scientific in the near future.
Boston Scientific confirmed its second quarter and full-year 2025 guidance for reported and organic sales, as well as adjusted EPS, despite the product discontinuation. The company plans to provide details on the GAAP EPS impact of this decision during its second-quarter earnings call in July. With a current P/E ratio of 75.79, investors seeking deeper insights into Boston Scientific’s valuation and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.
In other recent news, Boston Scientific Corporation announced the global discontinuation of its ACURATE neo2 and ACURATE Prime Aortic Valve Systems due to increased clinical and regulatory demands. Despite this, the company expects to meet its sales and earnings guidance for the second quarter and full year of 2025, although it has not reaffirmed its GAAP EPS guidance. Analysts at Citi maintain a Buy rating with a $125 target, viewing the decision as strategic for resource management. Meanwhile, Needham also reiterated a Buy rating with a $115 target, anticipating growth from products like FARAPULSE and WATCHMAN, with the latter potentially benefiting from the upcoming CHAMPION trial results in 2026.
Moody’s Ratings recently upgraded Boston Scientific’s ratings to A3, reflecting strong operating performance and revenue growth, bolstered by successful product commercialization. The company, with annual revenues nearing $18 billion, maintains a conservative financial policy with a leverage target of 2.25x-2.5x gross debt/EBITDA. However, it faces risks from competition, regulatory challenges, and a high appetite for acquisitions. The recent exit from the ACURATE valve market is seen as beneficial for competitors like Edwards Lifesciences (NYSE:EW), which may gain market share in the aortic valve sector.
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