In a report released today, Travis Steed from Bank of America Securities maintained a Buy rating on Boston Scientific, with a price target of $115.00.
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Travis Steed has given his Buy rating due to a combination of factors that highlight Boston Scientific’s potential for sustained growth and margin expansion. Despite facing tougher comparisons in pulse field ablation (PFA) growth, the company is expected to generate over $800 million in high-margin revenue from its electrophysiology (EP) segment. This substantial revenue growth is anticipated to cover the margin expansion projected by analysts, showcasing the company’s underappreciated margin flexibility and potential for earnings per share (EPS) upside.
Furthermore, the strong performance in the first quarter, driven by significant growth in EP and the Watchman device, is expected to continue supporting margins. The recent reduction in expected tariff impacts, particularly from China, also contributes positively to the financial outlook. Despite the anticipated write-off from discontinuing transcatheter aortic valve replacement (TAVR) in Europe, Boston Scientific is projected to maintain its revenue and EPS guidance for the year. These factors collectively underpin the confidence in the company’s durable growth, justifying the Buy rating.
In another report released on July 7, TD Cowen also reiterated a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 122 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BSX in relation to earlier this year.