Needham analyst Michael Matson maintained a Buy rating on Boston Scientific today and set a price target of $97.00.
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Michael Matson has given his Buy rating due to a combination of factors that, in his view, limit the financial and operational fallout from the pacemaker recalls. He points out that the issues highlighted by The New York Times relate to battery problems that Boston Scientific disclosed earlier, and the company has already implemented and plans further software updates to better detect devices at risk.
He also notes that pacemakers contribute only a small portion of overall revenue and that peers in cardiac rhythm management have faced similar recalls without material long‑term damage to their businesses. While he anticipates more lawsuits and a lengthy litigation process, he believes only a minority of affected patients will have valid claims and that Boston Scientific’s strong free cash flow gives it ample capacity to absorb even a sizable settlement, supporting his continued Buy rating despite this reputational setback.
Matson covers the Healthcare sector, focusing on stocks such as TransMedics Group, Atricure, and Boston Scientific. According to TipRanks, Matson has an average return of -0.8% and a 40.76% success rate on recommended stocks.