Summary

  • Boston Scientific guided for 8.5-10.5% annual growth in Q3 2023 net sales.
  • Brokers are bullish on BSX, with BTIG increasing its price target on BSX to US$64, reflecting an upside potential of 18% over Thursday’s closing price.
  • The mean recommendation rating on BSX is 1.7 on a scale of one to five and the consensus price target is US$61.39.

Medical equipment manufacturer Boston Scientific Corporation (NYSE: BSX) received a price target upgrade from brokers as it projects sales growth of 8% to 10% for 2024 to 2026.

The company held the Investor Day meeting and declared its Q2 2023 results on September 20, 2023. In the announcement, Boston Scientific reported net sales of US$3.6 billion for Q2 2023, marking an 11% increase over the company’s guidance for the period.

Meanwhile, the net income attributable to common stockholders was US$0.18 per share in Q2 2023. Meanwhile, the adjusted EPS was US$0.53 per share, as against the company guidance of US$0.48 to US$0.50 per share.

Boston Scientific’s guidance for net sales growth in Q3 2023 is in the range of 8.5% to 10.5% over the prior year period. This guidance was previously in the range of 6% to 8%. Meanwhile, the GAAP EPS is expected to be in the range of US$0.21 to US$0.25.

Consensus estimates suggest a 13% upside potential on BSX

As per EODHD/Others data, the consensus mean price target on BSX is US$61.39, an upside potential of 13.75% over its closing price on Thursday. BSX finished 0.24% lower on September 21, 2023, at US$53.97. On a YTD basis, the stock price was higher by 16.64% at Thursday’s close.

BSX Price Chart; Source: EODHD/Others

Some of the latest upgrades come from brokers BTIG and Needham, who have raised their price targets on BSX to US$64 and US$65, respectively.

As per EODHD/Others data, BTIG is bullish on BSX’s packed pipeline and star products like Farapulse and the Watchman platform. The broker also added that Boston Scientific’s latest product launches across various business segments also contribute to the positive sentiment on the stock.

Meanwhile, Stifel Nicolaus and Company also raised its price target on BSX to US$60, while retaining a ‘buy’ rating on it.

Do brokers suggest buying BSX?

EODHD/Others data suggests that the mean recommendation rating on BSX is 1.7 on five. Here, the scale ranges from one to five, where one stands for a ‘strong buy’ rating and five indicates a ‘strong sell' rating.

The mean recommendation rating has been achieved after accounting for the ratings given by a total of 32 analysts. Among these brokers, 13 have given BSX a ‘strong buy’ rating while 16 believe it to be a ‘buy’ or a ‘moderate buy’. Three analysts recommend holding the stock and none of the analysts have given BSX a ‘sell’ or a ‘strong sell’ rating.

Image Source: ©2023 Kalkine®; Data Source: EODHD/Others

Broker Needham raised its rating on BSX to ‘Buy’ on Thursday. Raymond James also upgraded the stock to ‘strong buy’ on Thursday, while Evercore ISI upped it to an ‘outperform’ rating. TD Cowen raised its rating on BSX to ‘outperform’ on September 20, 2023.

Alternatively, some brokers retained their previous ratings on the stock. Wells Fargo maintained an ‘overweight’ rating on BSX after reviewing it on September 20, 2023. Truist Securities and Piper Sandler also kept their ‘moderate buy’ ratings on BSX.