FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Thursday, Truist Securities expressed a positive outlook on Boston Scientific (NYSE:BSX) shares, raising the price target to $120 from $110, while reaffirming a Buy rating. The stock, currently trading near its 52-week high of $107.17, has delivered impressive returns with a 62% gain over the past year. The adjustment follows a robust fourth-quarter performance driven by several growth factors, including strong adoption of the PFA (Pulmonary Fibroblast Activation) technology and approximately 20% year-over-year growth of the WATCHMAN device, bolstered by additional procedures and clinical data.
The company’s success was not limited to these areas, as it also reported a beat in its Urology division and demonstrated profit and loss leverage. With revenue growth of 17.6% and a strong gross profit margin of 70%, Boston Scientific has maintained robust operational performance. According to InvestingPro analysis, which offers comprehensive insights through its Pro Research Reports covering 1,400+ top stocks, the company maintains a "GREAT" financial health score. Truist Securities analysts believe that the guidance for 2025, while consistent with previous forecasts, has embedded conservatism, suggesting the potential for future earnings beats and upward revisions.
Looking ahead, analysts at Truist Securities anticipate multiple catalysts that could further drive growth in the 2025-2026 timeframe. They project above-average revenue and EPS growth for Boston Scientific, supported by a strong product pipeline and favorable markets. The increase in the price target to $120 is based on approximately 37 times the firm’s higher estimated earnings per share for 2026. Based on current metrics, including a P/E ratio of 82.8, InvestingPro’s Fair Value analysis suggests the stock is currently trading above its intrinsic value.
In other recent news, Boston Scientific has been the focus of various financial firms following its strong fourth-quarter performance. Mizuho (NYSE:MFG) Securities raised the price target to $130 and maintained an Outperform rating, highlighting the company’s FARAPULSE sales exceeding $1 billion and the expected presentation of Phase 2 ADVANTAGE AF data in the first half of 2025.
Canaccord Genuity also increased its price target to $117, maintaining a Buy rating. The firm noted the company’s robust fourth-quarter earnings, with a 22.4% year-over-year increase in reported revenue and a 19.5% rise in organic revenue. The firm also emphasized Boston Scientific’s cardiovascular segment’s significant contribution to its growth.
Needham maintained its Hold rating for Boston Scientific, citing the company’s improved organic revenue growth of 19.5% in the fourth quarter of 2024. However, the firm anticipates a gradual slowdown in organic growth during 2025.
Bernstein analysts increased the price target for Boston Scientific shares from $110.00 to $121.00, reiterating an Outperform rating. The adjustment follows Boston Scientific’s report of significant organic growth and a robust forecast for 2025.
Lastly, Jefferies analyst Matthew Taylor increased the price target on Boston Scientific stock to $120 from the previous $100 while maintaining a Buy rating. The adjustment follows Boston Scientific’s strong fourth-quarter performance, where the company reported sales of $4.56 billion, marking a 19.5% organic increase.
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