Boston Scientific
Boston Scientific
BSX
$0.11
0.12%
67%
IBD Stock Analysis
- Rebounding from 50-day line within a flat base pattern offering 91.93 entry.
Industry Group Ranking
Emerging Pattern
Pullback
* Not real-time data. All data shown was captured at
11:48AM EST on
12/26/2024.
Boston Scientific (BSX) Thursday’s IBD Stock Of The Day as the medtech trades just below all-time highs it hit late last month. Meanwhile, analysts are raising BSX price targets with eyes on 2025.
Boston Scientific stock has gained 57% in 2024 but the average analyst price target sits at 101.06, according to FactSet. That represents a further 11% upside for BSX as it looks to forge a new actionable base.
Morgan Stanley analysts on Dec. 2 wrote that Boston Scientific has a “strong platform of assets it’s pushing and integrating as we move into 2025.”
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In late October, Boston Scientific reported better-than-expected third-quarter earnings and revenue. Total sales grew 18.2% organically, with overall cardiovascular sales — which includes electrophysiology sales — climbing 25% on a reported basis to $2.73 billion. Medical-surgical sales, Boston Scientific’s other segment, brought in $1.48 billion in sales, climbing 10.3%.
For the year, the company raised its profit outlook to an adjusted $2.45 to $2.47 per share, vs. its prior guidance for $2.38 to $2.42. Boston Scientific also expects full-year sales to grow about 15% organically, above its previous range for 13% to 14% growth.
However, the medtech also announced it paused enrollment in a study of its pulsed field ablation technology.
Pulsed field ablation, also called PFA, uses high-energy electrical pulses to treat abnormal heart rhythm and tumors. Boston Scientific launched its Farapulse PSA system earlier this year. Late last year, the company began the Avant Guard study to test the use of pulsed field ablation as a first treatment for persistent atrial fibrillation. Atrial fibrillation is a heart condition that causes the upper chambers of the heart to beat irregularly. Typically patients receive oral medications.
Analysts view the Farapulse PSA system as major part of analyst optimism on the stock.
Boston Scientific Stock Performance
BSX edged down around 0.15% to 90.93 during market trade on Thursday. The stock bounced of its 50-day moving average last week, putting it in a buy zone.
The stock is also technically in a flat base. But the base is long, dating back to August, the rebound and a high of 91.59 both offer entries before the flat base’s 91.93 entry.
While BSX has surged in 2024, the 126 stocks in the IBD tracked Medical-Products industry group have collectively only advanced 1.5% this year.
Last week, Truist analysts raised their price target on Boston Scientific to 110 from 100 and kept a buy rating on the shares. The firm broadly sees the medical technology sector as “one of the better/safer houses” in health care given its lower “front-line” exposure to health care policy rhetoric that is tied to the White House change of guard.
Earlier this month, TD Cowen raised the firm’s price target on Boston Scientific to 110 from 100 on expectations the company will achieve its goal of being the top-performing large-cap medtech company in 2024-26 and beyond.
Citi also raised its BSX price target 107 from 98 this month. The firm predicts this year’s BSX momentum to continue in 2025 with growth buoyed by the Farapulse pulsed-field ablation and continued adoption and penetration of the company’s “Watchman” left atrial appendage closure device.
Meanwhile, in a Dec. 16 safety communication posted to the site of the Food and Drug Administration, the agency stated alerted “patients, caregivers, and health care providers about the potential need for early device replacement of Boston Scientific Corporation Accolade pacemaker devices, which includes the Accolade, Proponent, Essentio, and Altrua 2 Standard Life and Extended Life pacemakers and the Visionist and Valitude cardiac resynchronization therapy pacemakers.”
“Boston Scientific announced a recall for a subset of Accolade pacemaker devices with an increased risk to permanently enter safety mode, which has limited functionality and has been associated with the pacemaker being unable to properly regulate the heart’s rhythm and rate in some patients,” the notice said.
Boston Scientific stock has a 93 Composite Rating out of a best-possible 99. The stock also has an 88 Relative Strength Rating and a 93 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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