Boston Scientific guided to 8% to 10% organic sales growth over the next three years on Wednesday, helping prod BSX stock into a brief breakout.
But shares peeled back in afternoon trading on today's stock market, closing up 2% at 54.10.
In earlier action, BSX stock jumped as much as 4.4% to 55.38. Boston Scientific stock briefly cleared a buy point at 54.74 out of a flat base, according to MarketSmith.com. Shares initially broke out late last month, but couldn't hold onto that gain.
Over the next three years, Boston Scientific expects sales to grow 8% to 10% on a compounded annual basis. Evercore ISI analyst Vijay Kumar noted that was above expectations and Boston Scientific's prior guidance for 6% to 8% growth.
"With shares up 260 basis points as we write this, the market reaction seems pretty muted to what was generally a bullish message," he said in a report. "Near-term slowdown of procedures in China and perhaps some nervousness around expectations creeping high come to mind."
BSX Stock: Growth In Electrophysiology
Boston Scientific's bullishness stems from its pulsed field ablation system. This system helps isolate and target specific cardiac tissues to treat certain heart conditions. The company expects about half of all electrophysiology treatments could be done by pulsed field ablation therapy by 2026. Currently, just 5% of those procedures are done using a system's like Boston Scientific's.
Evercore's Kumar expects Boston Scientific to have a high-teens percentage share of the market by 2026.
The Investor Day news follows Boston Scientific's announcement Tuesday that it would buy Relievant Medsystems for $850 million up front and undisclosed additional contingent payments based on sales performance over the next three years. Relievant is a privately held firm working on minimally invasive treatments for lower back pain. But BSX stock just crept a fraction ahead.
BSX stock has a Relative Strength Rating of 80 out of a best-possible 99, according to IBD Digital. This means Boston Scientific stock has performed in the top 20% of all stocks over the last 12 months. But a year ago, shares had a slightly better RS Rating of 84.
Still, BSX stock is the fourth best-performing stock by RS Rating in IBD's 131-company Medical Products industry group.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
