On Thursday, Canaccord Genuity updated its outlook on Boston Scientific (NYSE:BSX), raising the price target to $88 from the previous $83, while sustaining a Buy rating on the stock.
The revision follows Boston Scientific's reported earnings, which surpassed both the firm's and the consensus estimates. Boston Scientific's revenue reached $4,120 million, marking a 14.5% year-over-year increase on a reported basis and a 14.7% increase on an organic basis. This performance exceeded Canaccord Genuity's estimate of $4,010 million and the consensus estimate of $4,021 million.
Boston Scientific's strong financial results were further highlighted by its adjusted earnings per share (EPS) of $0.62, which outperformed Canaccord Genuity's estimate of $0.59 and the consensus of $0.58. In response to the robust quarter, the company has also uplifted its full-year 2024 guidance, now projecting growth in the range of 13.5% to 14.5%, an increase from the previous forecast of 11.0% to 13.0%.
The company's momentum is attributed to several factors, including the success of Farapulse, which has been a significant contributor to the company's performance. Looking ahead, Canaccord Genuity expects the momentum to continue into 2025, driven by a series of anticipated catalysts.
These include the uptake of Agent DCB in the United States, starting in the fourth quarter of 2024, and its recent approval in China, as well as the expected approval for modular CRM systems in 2025.
Moreover, Boston Scientific anticipates additional growth opportunities with likely add-on reimbursement for Farapulse in the fourth quarter of 2024, the launch of Farapulse in Japan and China in 2025 and the second half of 2024 respectively, and the Neo2 Prime launch in Europe in the second half of 2024. Additionally, results from the OPTION trial (Watchman) are expected in the first quarter of 2025.
The company has, however, adjusted the timeline for the release of US pivotal data from the Acurate neo2 study, now planning to present the findings at the American College of Cardiology (ACC) meeting in 2025. Despite this postponement and the tempered expectations for the data, Canaccord Genuity maintains its positive outlook on Boston Scientific's stock, as reflected in the raised price target.
In other recent news, Boston Scientific's Q2 operational sales grew by 16%, with organic sales up 15%. Regionally, sales in the U.S., Europe, and Asia-Pacific grew by 17%, 16%, and 13%, respectively.
Deutsche Bank has recently adjusted its outlook on Boston Scientific, increasing the price target to $78 from $73 while maintaining a Hold rating. The firm noted Boston Scientific's effective execution and shift towards higher-growth segments, which has resulted in an improved growth profile. Additionally, the company's operating margin exceeded expectations, coming in at 27.2% compared to the consensus of 26.7%.
In other recent developments, Boston Scientific's focus on mergers and acquisitions, including the pending acquisitions of AXNX and SILK, is seen as a positive move to enhance growth prospects.
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.
InvestingPro Insights
As Boston Scientific (NYSE:BSX) garners a favorable outlook from Canaccord Genuity, a glance at the real-time data from InvestingPro provides additional context to the company's financial health and market position. Boston Scientific's market capitalization stands robust at $114.32 billion, underscoring its substantial presence in the healthcare equipment and supplies sector. With a P/E ratio of 64.04, the company might appear to trade at a premium, but considering the adjusted P/E ratio for the last twelve months as of Q2 2024, which is 54.75, it seems more aligned with its near-term earnings growth potential.
An InvestingPro Tip highlights that Boston Scientific's net income is expected to grow this year, which aligns with the company's uplifted full-year 2024 guidance. Additionally, the company's PEG ratio of 0.64 suggests that its stock price is reasonable relative to its earnings growth rate. While the company does not pay dividends, its strong performance, as indicated by a 27.83% price total return over the last six months, may attract growth-focused investors.
For those seeking further insights and investment analysis, there are 15 additional InvestingPro Tips available for Boston Scientific, which can be found at https://www.investing.com/pro/BSX. Prospective investors can also take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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