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Boston Scientific maintains with Overweight rating

EditorTanya Mishra
Published 09/19/2024, 07:57 AM
BSX
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Boston Scientific Corporation (NYSE:BSX) received a continued vote of confidence from a major investment firm as Piper Sandler maintained both an Overweight rating and a $90.00 price target on the company's shares. The endorsement follows a recent discussion with management from two of Boston Scientific's rapidly expanding franchises, Watchman and Farapulse.

The conversation with Boston Scientific management earlier this week highlighted the potential for significant market growth through the combined use of ablation and left atrial appendage closure (LAAC) technologies. Boston Scientific estimates that even with moderate market penetration, this approach could double the size of the LAAC market.

The firm projects that this could conservatively represent a $730 million domestic opportunity, contributing to substantial growth in 2025 and 2026.

Boston Scientific is expected to benefit from other catalysts. The outcomes of the Option and Champion-AF trials may further increase global adoption, with an estimated 18 million patients potentially benefiting from these technologies according to Boston Scientific's projections.

Farapulse, known for its percutaneous left atrial appendage closure (PFA) technology, continues to experience robust adoption rates. The anticipated launch of the Farawave Nav catheter by the end of the year is set to enable Boston Scientific to tap into additional mapping revenues that competitors currently claim. This strategic move is expected to bolster the company's revenue stream significantly.

The investment firm's report suggests that the combined strength of Watchman and Farapulse franchises will likely support Boston Scientific's position as a diversified leader in the medical technology sector well into the end of the decade. The firm reiterated its Overweight rating to reflect this positive outlook.

In other recent news, Boston Scientific Corporation has completed its acquisition of Silk Road Medical (NASDAQ:SILK), integrating its innovative transcarotid artery revascularization (TCAR) procedure into Boston Scientific's portfolio. The company has also reported significant increases in revenue and adjusted earnings per share (EPS) for the second quarter, surpassing expectations. Analyst firms, including Baird, Canaccord Genuity, and Deutsche Bank, have adjusted their price targets for Boston Scientific upward in response to these developments.

In addition, the U.S. Food and Drug Administration (FDA) has approved the expansion of the use of Boston Scientific's INGEVITY+ Pacing Leads for conduction system pacing (CSP) and sensing in the left bundle branch area (LBBA).

The company is also preparing for the launches of the FARAVIEW software module and FARAWAVE Nav-enabled catheter in the latter half of the year.

The company's focus on mergers and acquisitions, including the pending acquisitions of AXNX and SILK, is seen as a positive move to enhance growth prospects. Boston Scientific has raised its full-year guidance for organic growth and adjusted EPS, attributing this to the robust performance across its product portfolio, particularly in the cardiovascular segment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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