/Boston%20Scientific%20Corp_%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
Marlborough, Massachusetts-based Boston Scientific Corporation (BSX) is a developer, manufacturer, and marketer of medical devices for use in various interventional medical specialties worldwide. With a market cap of $109.3 billion, the company operates through MedSurg and Cardiovascular segments.
The company has significantly outperformed the broader market over the past year. BSX stock is up 43.9% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 15.8% gains over the same time frame. In 2024, BSX gained 26.2% compared to SPX’s 8.7% return on a YTD basis.
Zooming in further, BSX also outperformed the US Medical Devices Ishares ETF (IHI). The exchange-traded fund marginally gained on a YTD basis and over the past 52 weeks.
Shares of Boston Scientific have been on an impressive run, outpacing the broader market with a series of strategic wins and robust performances. The journey began in late January when shares surged 3% following the U.S. FDA's green light for the Farapulse heart device, making it only the second PFA system approved after Medtronic's (MDT) PulseSelect. This milestone, coupled with stellar Q4 earnings results and a profit forecast that exceeded analysts' expectations, fueled investor confidence and buoyed the stock.
The momentum continued on Apr. 24, with a notable 5.7% rise as Boston Scientific lifted its annual profit forecast and delivered a stronger-than-expected Q1 earnings release. This surge was driven by a 72% spike in electrophysiology sales, highlighting the strong adoption of its Farapulse system.
However, despite solid growth in Q2 revenues and earnings reported on July 24, shares dipped by 4.5% in the subsequent trading session due to a GAAP net income miss, underscoring the challenges of high investor expectations.
For the current fiscal year, ending in December, analysts expect Boston Scientific to report an EPS growth of 17.1% to $2.40. The company has a history of surpassing consensus EPS estimates in its quarterly reports. In the last reported quarter, Boston Scientific exceeded the consensus estimates by 6.9%.
Among the 27 analysts covering the stock, the consensus rating is “Strong Buy.” That’s based on 22 “Strong Buy” ratings, three “Moderate Buys,” and two “Holds.”
This configuration is slightly more bullish than three months before, with 19 analysts recommending a “Strong Buy.”
On Aug. 1, Deutsche Bank (DB) analyst Pito Chickering maintained a “Hold” rating with a price target of $78.
BSX’s mean price target of $88.11 represents a premium of 20.8% to current price levels. The Street-high target of $100 indicates a potential upside of 37.1%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
