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Boston Scientific (BSX)
:BSX

Boston Scientific (BSX) AI Stock Analysis

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Boston Scientific

(NYSE:BSX)

Rating:74Outperform
Price Target:
$113.00
▲(8.32%Upside)
Boston Scientific's overall stock score reflects its strong financial performance and positive earnings outlook, which are partially offset by high valuation and mixed technical indicators. The company's strategic initiatives in cardiology and electrophysiology are driving growth, though external challenges like tariffs and regulatory pressures present risks.
Positive Factors
Innovation and Market Position
Boston Scientific is very well-positioned to deliver above-consensus results in its Electrophysiology and Watchman businesses, driven by the highly attractive growth dynamics of these end markets.
Market Leadership
Boston Scientific's Watchman Left Atrial Appendage Closure device holds a 90% share of its market, benefiting from more time before facing competition from JNJ.
Revenue Growth
Analyst maintains a Buy rating on Boston Scientific due to a durable double-digit revenue growth outlook with high margin revenue potential.
Negative Factors
Clinical Trial Delays
The IDE study evaluating the LAMINAR Left Atrial Appendage Elimination device was voluntarily paused due to issues with unwrapping, leading to leaks in select device sizes.
Revenue Impact
The loss of approximately $200 million ACURATE OUS revenue is about a 1-point impact to Boston Scientific's growth rate.

Boston Scientific (BSX) vs. SPDR S&P 500 ETF (SPY)

Boston Scientific Business Overview & Revenue Model

Company DescriptionBoston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems. It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems. In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies. Further, it provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, cryotherapy ablation systems, and micro and drainage catheters to treat cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.
How the Company Makes MoneyBoston Scientific makes money primarily through the sale of its medical devices and technologies across its different business sectors. The company generates revenue from hospitals, clinics, and health systems that purchase its products for use in various medical procedures. Key revenue streams for Boston Scientific include its Cardiovascular segment, which offers products for coronary interventions, structural heart therapies, and peripheral interventions; the Rhythm Management segment, providing devices for cardiac rhythm disorders; and the MedSurg segment, which includes products for endoscopy, urology, and pelvic health. Additionally, Boston Scientific benefits from strategic partnerships and acquisitions that enhance its product portfolio and expand its market presence, contributing to its overall earnings.

Boston Scientific Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business units or product lines, highlighting which areas drive growth and where the company might be over-reliant or underperforming.
Chart InsightsBoston Scientific's cardiology segment is driving robust growth, with a notable 31% increase in sales, bolstered by strong performance in WATCHMAN and interventional cardiology therapies. Despite challenges in urology due to supply chain issues, and a $200 million tariff impact, the company raised its full-year organic growth guidance, reflecting confidence in its strategic initiatives. The earnings call highlighted exceptional revenue growth and EPS exceeding expectations, underscoring the company's resilience and strategic focus on high-performing segments like cardiology and electrophysiology.
Data provided by:Main Street Data

Boston Scientific Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 9.75%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong revenue and EPS growth exceeding expectations, particularly in the cardiology and electrophysiology segments. However, challenges such as significant tariff impacts, slower growth in certain segments, and foreign exchange headwinds were noted, adding some concerns to the otherwise strong performance.
Q1-2025 Updates
Positive Updates
Exceptional Revenue Growth
Total company operational sales grew 22% and organic sales grew 18%, both exceeding the high end of the guidance range of 14% to 16%.
Adjusted EPS Exceeds Guidance
First quarter adjusted EPS of $0.75 grew 34%, exceeding the high end of the guidance range of $0.66 to $0.68.
Cardiology Segment Performance
Cardiology delivered another fantastic quarter with sales growing 31%, including a 24% growth in WATCHMAN and 9% in interventional cardiology therapies.
Electrophysiology Leadership
Electrophysiology sales grew 145%, and the company is now the #2 player globally in EP.
Strong Regional Growth in the U.S.
The U.S. grew 31% with double-digit growth in 5 of 8 business units.
Negative Updates
Impact of Newly Enacted Tariffs
Tariffs are expected to have an approximate $200 million impact in 2025, posing a headwind to financial performance.
Challenges in Urology and CRM
Urology sales grew 4% organically, affected by supply chain issues. Cardiac Rhythm Management sales grew only 1% in the first quarter.
Foreign Exchange Headwind
A 130 basis point headwind from foreign exchange affected first quarter revenue growth.
Company Guidance
During the Boston Scientific First Quarter 2025 Earnings Call, the company reported robust financial performance and provided updated guidance. The firm's operational sales grew by 22%, with organic sales increasing by 18%, both surpassing the high end of the guidance range of 14% to 16%. Adjusted EPS for the quarter was $0.75, a 34% growth that exceeded the guidance range of $0.66 to $0.68. The adjusted operating margin was reported at 28.9%. Looking forward, Boston Scientific raised its full-year organic growth guidance from 10% to 12% to a range of 12% to 14%, reflecting strong performance in its cardiology portfolio. The company also provided second-quarter organic growth guidance of 13% to 15% and adjusted EPS guidance of $0.71 to $0.73, with a full-year adjusted EPS range of $2.87 to $2.94, indicating growth of 14% to 17%. Despite a $200 million impact from tariffs, the company plans to offset this through increased sales and strategic cost reductions.

Boston Scientific Financial Statement Overview

Summary
Boston Scientific demonstrates strong financial performance with consistent revenue growth, solid profitability, and efficient cash flow management. Notably, the company maintains strong gross and net profit margins and a healthy balance sheet with manageable leverage. However, there is room for improvement in reducing debt levels.
Income Statement
85
Very Positive
Boston Scientific has demonstrated robust growth in its revenue, with a notable TTM (Trailing-Twelve-Months) increase of 4.81% compared to the previous year. The company maintains strong gross and net profit margins at 67.15% and 11.57% respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are solid at 17.52% and 21.65%, reflecting operational efficiency. Overall, the company shows a positive growth trajectory in the medical devices industry.
Balance Sheet
78
Positive
The balance sheet reflects a healthy financial position with a Debt-to-Equity ratio of 0.51, showing manageable leverage. The Return on Equity (ROE) stands at a strong 9.15%, indicating effective utilization of shareholders' equity. The Equity Ratio is 55.33%, suggesting a stable asset base supported by equity. Overall, the company maintains a strong balance between debt and equity, although there is room for improvement in reducing debt levels.
Cash Flow
80
Positive
Boston Scientific exhibits strong cash flow management with a Free Cash Flow growth rate of 8.62%, indicating improved cash generation. The Operating Cash Flow to Net Income ratio is 1.88, demonstrating the company's ability to convert income into cash efficiently. The Free Cash Flow to Net Income ratio is 1.41, reflecting good cash flow productivity. Overall, the company shows robust cash flow health, supporting its financial stability and operational needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.55B16.75B14.24B12.68B11.89B9.91B
Gross Profit12.05B11.49B9.89B8.68B8.13B6.40B
EBITDA4.09B3.86B3.45B2.74B2.52B1.51B
Net Income2.03B1.85B1.59B698.00M1.04B-140.00M
Balance Sheet
Total Assets40.14B39.40B35.14B32.47B32.23B30.78B
Cash, Cash Equivalents and Short-Term Investments725.00M414.00M865.00M928.00M1.93B1.73B
Total Debt11.71B11.15B9.49B9.28B9.45B9.54B
Total Liabilities17.69B17.39B15.61B14.90B15.61B15.45B
Stockholders Equity22.21B21.77B19.28B17.57B16.62B15.33B
Cash Flow
Free Cash Flow2.87B2.65B1.70B914.00M1.32B1.13B
Operating Cash Flow3.81B3.44B2.50B1.53B1.87B1.51B
Investing Cash Flow-5.90B-5.69B-2.57B-2.01B-1.60B-411.00M
Financing Cash Flow2.15B1.81B5.00M-548.00M-95.00M293.00M

Boston Scientific Technical Analysis

Technical Analysis Sentiment
Positive
Last Price104.32
Price Trends
50DMA
103.27
Positive
100DMA
101.50
Positive
200DMA
95.90
Positive
Market Momentum
MACD
0.69
Negative
RSI
54.03
Neutral
STOCH
50.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSX, the sentiment is Positive. The current price of 104.32 is above the 20-day moving average (MA) of 102.50, above the 50-day MA of 103.27, and above the 200-day MA of 95.90, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 54.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSX.

Boston Scientific Risk Analysis

Boston Scientific disclosed 27 risk factors in its most recent earnings report. Boston Scientific reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Boston Scientific Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SYSYK
81
Outperform
$151.06B53.3414.26%0.85%10.76%-15.22%
78
Outperform
$32.52B62.2623.72%9.11%-17.87%
MDMDT
77
Outperform
$113.25B24.469.49%3.21%3.62%31.18%
BSBSX
74
Outperform
$154.34B76.449.65%19.35%14.31%
ABABT
74
Outperform
$233.90B17.4430.66%1.75%5.00%139.98%
ABABT
74
Outperform
$233.90B17.4430.66%1.75%5.00%139.98%
EWEW
64
Neutral
$45.05B51.3116.73%-9.84%-35.77%
52
Neutral
$7.53B0.32-61.76%2.28%16.60%1.56%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BSX
Boston Scientific
104.32
28.21
37.06%
ABT
Abbott Laboratories
134.44
34.33
34.29%
ABT
Abbott Laboratories
134.44
34.33
34.29%
DXCM
Dexcom
82.93
-28.04
-25.27%
EW
Edwards Lifesciences
76.79
-15.05
-16.39%
MDT
Medtronic
88.39
14.02
18.85%
SYK
Stryker
395.28
64.16
19.38%

Boston Scientific Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Boston Scientific Discontinues Aortic Valve Systems
Negative
May 28, 2025

On May 28, 2025, Boston Scientific announced the discontinuation of its ACURATE neo2™ and ACURATE Prime™ Aortic Valve Systems, ceasing global sales and halting pursuit of FDA approval due to increased regulatory demands. Despite the financial implications, the company expects to meet its sales and earnings guidance for 2025, though it is withholding reaffirmation of its GAAP EPS guidance until further updates in its second quarter earnings call.

The most recent analyst rating on (BSX) stock is a Buy with a $113.00 price target. To see the full list of analyst forecasts on Boston Scientific stock, see the BSX Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Boston Scientific Stockholders Approve Key Governance Proposals
Positive
May 6, 2025

On May 1, 2025, Boston Scientific held its Annual Meeting of Stockholders virtually, where all 10 director nominees were elected for a one-year term. Additionally, stockholders approved the compensation for the company’s Named Executive Officers, ratified the appointment of Ernst & Young LLP as the independent public accounting firm for 2025, and supported a proposal for a simple majority vote, indicating strong shareholder engagement and support for the company’s governance and strategic direction.

Executive/Board Changes
Boston Scientific Announces CFO Retirement and Successor
Neutral
Apr 23, 2025

On April 23, 2025, Boston Scientific announced the retirement of Dan Brennan, its Chief Financial Officer, after nearly 30 years with the company. Brennan will be succeeded by Jon Monson, currently the Senior Vice President of Investor Relations, effective June 30, 2025. Monson, with over 25 years at Boston Scientific, brings extensive financial expertise and will oversee several key company functions. This leadership transition is expected to ensure continuity and further strengthen the company’s financial strategies and operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 17, 2025