On Wednesday, Piper Sandler reaffirmed its Overweight rating on shares of Boston Scientific (NYSE:BSX) shares with a steady price target of $95.00. The $135.6 billion medical devices giant maintains a strong Buy consensus among analysts, according to InvestingPro data.
The firm's analyst, Matt O'Brien, expressed continued optimism for the company's performance, particularly highlighting the success of its Farapulse product in the pulsed field ablation (PFA) market. According to O'Brien, Farapulse has dominated the PFA market, and despite the introduction of two new PFA catheters this year, he does not foresee a significant impact on Boston Scientific's market share.
O'Brien predicts that Farapulse will contribute to a 400 basis point increase in Boston Scientific's top-line growth for the year. This outlook aligns with the company's strong revenue growth of 15.66% over the last twelve months.
He also anticipates that there is still significant potential for PFA to expand its share of the atrial fibrillation (AF) ablation market. His projections suggest that Farapulse could become a $2.4 billion product by 2026, assuming it captures the majority share of the AF market, even with an expected erosion in market share.
Boston Scientific's stock performance was notably strong in the previous year, with shares rising 56% and currently trading near its 52-week high of $92.42. The analyst expects that the company will continue to see its stock value climb, supported by what he considers some of the strongest top-line growth within the diversified, large-cap medtech sector.
InvestingPro analysis indicates the stock is trading above its Fair Value, though its "GREAT" financial health score suggests strong fundamentals. For deeper insights into BSX's valuation and 14+ additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
In contrast, he noted that shares of Medtronic (NYSE:MDT), a competitor, have declined by 3% over the same period. O'Brien anticipates that Medtronic's stock may continue to trade sideways due to pressures from falling cryoablation sales.
In other recent news, Boston Scientific Corporation (NYSE:BSX) announced the acquisition of Bolt Medical (TASE:PMCN), Inc., a company specializing in intravascular lithotripsy (IVL) technology. The acquisition, expected to close in the first half of 2025, is part of Boston Scientific's strategy to expand its cardiovascular product offerings. The company also experienced robust revenue growth of 15.66% over the last twelve months.
Moreover, Boston Scientific received an upgraded price target from Truist Securities, which maintained a Buy rating on the stock. The company's recent strategic acquisitions and strong revenue growth contributed to this positive outlook.
In related news, Insulet (NASDAQ:PODD) Corporation saw its price target increased from $270 to $300 by BTIG, which also maintained a Buy rating. The revision is based on anticipated U.S. sales growth of the Omnipod insulin management system and an expected annual improvement of 120 basis points in the EBIT margin for 2025 and 2026.
These recent developments are expected to attract investor interest and contribute to the continued growth and potential of these companies.
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