On Wednesday, BTIG analyst reaffirmed a Buy rating with a $101.00 price target on Boston Scientific shares (NYSE:BSX), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $135.6 billion, following the company's announcement of its acquisition of Bolt Medical (TASE:PMCN).
According to InvestingPro data, BSX has demonstrated impressive momentum, delivering a 57.46% return over the past year and currently trading near its 52-week high of $92.42. The transaction includes an initial payment of approximately $443 million and additional payments up to $221 million contingent on reaching certain regulatory milestones.
Boston Scientific has been an investor in Bolt Medical since 2019, holding a 26% equity stake. The total transaction value on a 100% basis is $600 million upfront, with up to $300 million in potential future payments.
Boston Scientific expects the acquisition to close in the first half of 2025. The company anticipates the deal will be slightly dilutive to its adjusted earnings per share (EPS) for 2025 and more so on a GAAP basis. However, Boston Scientific will also record a one-time gain upon closing due to its existing stake in Bolt Medical.
The integration of Bolt Medical's pre-regulatory coronary and peripheral products will enhance Boston Scientific's Cardiovascular portfolio. The acquisition allows Boston Scientific to enter the intravascular lithotripsy (IVL) market, a sector where Johnson & Johnson has established dominance after acquiring Shockwave Medical (NASDAQ:SWAV) in 2024. Thibault views this move as a strategic step for Boston Scientific, positioning the company to compete in a high-growth area.
Thibault also notes Boston Scientific's ongoing innovation across its Cardiovascular portfolio, including internal research and development and venture investments in areas such as left ventricular circulatory support, renal denervation, heart valve repair/replacement, and shunt technology.
The company's strong cash flows and moderate debt levels, as highlighted by InvestingPro, position it well for continued strategic investments. Based on InvestingPro's Fair Value analysis, the stock currently appears to be trading above its intrinsic value, with 14 additional ProTips available to subscribers.
The announcement comes amid a series of mergers and acquisitions within the MedTech industry, with Stryker (NYSE:SYK)'s recent acquisition of Inari Medical earlier this week. Analyst stated that BTIG's estimates for Boston Scientific are not currently under review, but an update to their model will be provided after the transaction's completion.
In other recent news, Boston Scientific, a $135.6 billion medical devices giant, has been the subject of renewed investor attention due to several significant developments.
The company recently announced the acquisition of Bolt Medical, Inc., a firm specializing in intravascular lithotripsy (IVL) technology. This strategic move is expected to enhance Boston Scientific's cardiovascular product offerings and contributes to its robust revenue growth of 15.66% over the past year.
Piper Sandler reaffirmed an overweight rating on Boston Scientific shares, with analyst Matt O'Brien expressing optimism for the company's performance, especially its Farapulse product. O'Brien anticipates Farapulse will contribute to a 400 basis point increase in the company's top-line growth for the year.
Truist Securities also maintained a buy rating on Boston Scientific, upgrading its price target due to the company's strategic acquisitions and strong revenue growth. These recent developments are part of a broader trend of positive analyst ratings and strategic acquisitions in the healthcare sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.