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Truist maintains Buy on Boston Scientific with $110 target

Published 20/12/2024, 20:06
Truist maintains Buy on Boston Scientific with $110 target
BSX
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On Friday, Truist Securities maintained its positive stance on Boston Scientific (NYSE:BSX), with a reiterated Buy rating and a $110.00 price target. The medical device giant, currently valued at $131.8 billion, has delivered impressive returns with a 61.26% gain over the past year.

According to InvestingPro data, the stock is trading near its 52-week high of $91.93. The firm’s optimism is based on a recent virtual discussion with Boston Scientific’s CEO, Mike Mahoney, which covered a range of topics including the company’s near-term and long-term growth catalysts, market leadership, and operational margin expansion.

Boston Scientific’s management highlighted their commitment to continue the company’s 12-year streak of growing the Weighted Average Market Growth Rate (WAMGR) year-over-year. With a robust 15.66% revenue growth in the last twelve months and an impressive gross margin of 68.74%, the company has demonstrated strong operational execution.

They also emphasized plans to maintain market leadership and expand growth in areas such as Pulmonary Fibrosis Ablation (PFA) and Left Atrial Appendage Closure (LAAC) over the next four to five years.

In addition to growth in specific markets, Boston Scientific intends to expand its operating margin by at least the 150 basis points plus Long Range Plan (LRP) target over the years 2024 to 2026. The management suggests that the margin could potentially increase even more while continuing to invest in long-term sustainable growth.

Truist Securities believes that Boston Scientific is poised to sustain above-average revenue and earnings per share growth due to its rich pipeline, attractive markets, and a portfolio considered best-in-class. The company’s strategic direction and innovative approach have led Truist to identify Boston Scientific as a favored large-cap pick for 2025.

In other recent news, Piper Sandler analysts expressed optimism for several healthcare companies, including ATEC, ATRC, and KIDS, in anticipation of a major investor conference. Boston Scientific Corporation (NYSE:BSX) completed the acquisition of Axonics, aiming to strengthen its Urology and Pelvic Health business. The company also announced a definitive agreement to acquire Intera Oncology Inc., a specialist in liver cancer treatment devices and medication.

Analysts from RBC Capital Markets projected a favorable outlook for 2025 in the Medical (TASE:PMCN) Supplies & Devices sector. They highlighted ’quality with catalysts’ stocks like Boston Scientific and Intuitive Surgical (NASDAQ:ISRG), with DexCom (NASDAQ:DXCM), Medtronic (NYSE:MDT), and Edwards Lifesciences (NYSE:EW) offering the best value or potential upside.

TD Cowen raised its price target on Boston Scientific Corporation shares to $110 from $100, reiterating a Buy rating. The firm believes Boston Scientific is on track to become the leading large-cap medical technology company in the period from 2024 to 2026.

Abbott Laboratories (NYSE:ABT)’ Aveir dual-chamber leadless pacemaker is positioned as a competitor to Medtronic PLC (BVMF:MDTC34)’s Micra in the pacemaker market. Boston Scientific’s Farapulse and Medtronic’s Affera were compared in the field of atrial fibrillation treatments.

Procept BioRobotics reported robust revenue growth of 66% in the third quarter, totaling approximately $58.4 million. The company initiated a public offering of common stock valued at $175 million, with BofA Securities, and Morgan Stanley (NYSE:MS) serving as the joint book-running managers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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