Boston Scientific news ‘zero surprise,’ says JPMorgan

JPMorgan would be a buyer of Boston Scientific (BSX) on any material weakness after the company announced it is discontinuing worldwide sales of its ACURATE neo2 and ACURATE Prime valves and no longer pursuing FDA approval of its transcatheter aortic valve replacement platform in the U.S. and other geographies. The news comes as “zero surprise” after Boston delayed its initial submission to the FDA and ACURATE neo2 missed non-inferiority versus Edwards Lifesciences (EW) and Medtronic (MDT), the analyst tells investors in a research note. JPMorgan says that while this likely takes some near-term upside off the table for Boston Scientific, the investing narrative does not change and this is the right long term strategic decision for the company. Boston’s move is a “small benefit” for Edwards Lifesciences, Medtronic and Abbott (ABT), the firm contends. JPMorgan keeps an Overweight rating on Boston Scientific with a $135 price target. The stock in morning trading is down 1% to $105.14.