Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Monday, TD Cowen analysts confirmed their positive stance on Boston Scientific (NYSE:BSX), maintaining a Buy rating and a $115.00 price target for the company’s shares. The medical device giant, currently valued at $138.4 billion, has demonstrated robust performance with a 41% return over the past year. According to InvestingPro data, the company maintains a "GREAT" overall financial health score, supported by strong profit and growth metrics. The affirmation comes as the firm anticipates Boston Scientific to surpass first-quarter earnings expectations and either raise or uphold its 2025 organic sales growth forecast of 10-12%. The analysts also expect the company to reconfirm its earnings per share (EPS) guidance of $2.80-$2.87.
The confidence expressed by TD Cowen is based on the performance of similar companies such as Johnson & Johnson (JNJ) and Abbott Laboratories (NYSE:ABT), whose first-quarter reports have been strong. Additionally, market checks indicate robust demand for Boston Scientific’s Farapulse and Watchman products, among other factors contributing to the company’s growth.
Boston Scientific is set to release its first-quarter results before the market opens on Wednesday, April 23. The company’s initial guidance for the quarter projected reported and organic revenue growth of 17-19% and 14-16%, respectively, with an adjusted EPS of $0.66-$0.68. TD Cowen’s revenue model aligns with the consensus forecast at $4.57 billion, indicating 18.5% reported growth and 15.6% organic growth. Their EPS estimate stands at $0.67, which matches the consensus target and falls within the company’s provided guidance range. Analyst targets for the stock range from $84 to $135, with a strong consensus recommendation of 1.5 (where 1 is Strong Buy).
The analysts’ report underscores Boston Scientific’s potential to maintain superior sales growth despite broader economic challenges. The company’s performance is being closely watched as it approaches its quarterly financial disclosure, with expectations set against a backdrop of positive industry reports and strong product demand. With a beta of 0.73, the company has shown lower volatility compared to the broader market, while maintaining strong cash flows that adequately cover its moderate debt levels.
In other recent news, Boston Scientific has received significant attention from analysts and credit rating agencies due to its strong performance and strategic developments. S&P Global Ratings upgraded Boston Scientific’s issuer credit rating and its issue-level rating on senior unsecured debt to ’A-’ from ’BBB+’, citing the company’s robust performance and stable outlook. Boston Scientific’s organic growth and strong free cash flows are projected to continue, with expected revenue growth of 11-13% over the next two years. Needham analysts recently upgraded Boston Scientific stock from Hold to Buy, with a new price target of $113.00, reflecting an optimistic outlook on the company’s competitive position and growth potential.
Additionally, RBC Capital Markets maintained its Outperform rating with a $116 price target, emphasizing Boston Scientific’s resilience to economic disruptions and its potential to exceed financial guidance through product innovations like the WATCHMAN device and PFA technology. The company’s recent acquisitions, including Bolt Medical (TASE:BLWV) and SoniVie, are anticipated to provide new avenues for expansion starting in 2025. Boston Scientific’s strategic focus on single-use disposables and high-acuity procedures positions it well in the current economic climate. These developments underline the company’s strong growth trajectory and continued appeal to investors.
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