Boston Scientific Gets Strong Buy Rating and Price Target Increase After Q1 Earnings Beat

Wells Fargo's Larry Biegelsen raised their price target on Boston Scientific (NYSE: BSX) by 13.9% from $72 to $82 on 2024/04/25. The analyst maintained their Strong Buy rating on the stock.

This update comes after Boston Scientific reported its first-quarter 2024 earnings on April 24, surpassing revenue and earnings per share (EPS) estimates. The company also raised its revenue outlook for 2024 by 250 basis points, now projecting a growth rate of 10% to 12%.

In relation to the company's Long Range Plan (LRP), Biegelsen predicts an 8% to 10% increase from 2024 to 2026. This projection is supported by the earlier-than-expected U.S. Farapulse launch and the improved 2024 guidance.

For the first quarter of 2024, Boston Scientific reported an EPS of $0.56, beating the Zacks Consensus Estimate of $0.51 by 19.1%. Compared to the same period in 2023, the EPS increased by 19.1%. The company's revenue for Q1 2024 amounted to $3.86 billion, beating the Zacks Consensus Estimate by 4.85% and showing a 13.8% increase from Q1 2023.

Looking ahead, Boston Scientific's management provided guidance for the second quarter of 2024, expecting an EPS ranging from $0.57 to $0.59 and revenue growth of 10.5% to 12.5%. For the full fiscal year 2024, the company anticipates an EPS between $2.29 and $2.34, along with revenue growth of 11% to 13%.

Commenting on the impressive first-quarter results, Chairman and CEO Mike Mahoney attributed the company's success to its talented global team, diversified businesses, and robust pipeline of innovative products. Mahoney highlighted the initial U.S. launch of the FARAPULSE™ Pulsed Field Ablation System as a significant contributing factor to their exceptional performance.

In addition to Larry Biegelsen's updated price target and Strong Buy rating, other analysts have also revised their outlook for Boston Scientific on April 25, 2024. Deutsche Bank's Pito Chickering raised their price target by 15.9% from $63 to $73 while maintaining their Hold rating. Citigroup's Joanne Wuensch increased their price target by 7.6% from $79 to $85 and maintained their Strong Buy rating. JP Morgan's Robbie Marcus raised their price target by 13.9% from $72 to $82 and also maintained their Strong Buy rating.

It is worth noting that all top-rated analysts currently rate BSX as either a Strong Buy or Buy, with no analysts considering it a Hold. None of the analysts recommend selling the stock.

Analysts' consensus forecast for Boston Scientific indicates that the company is expected to achieve earnings per share (EPS) of $1.44 in the upcoming year. If this prediction holds true, it would represent a year-over-year increase of 33.7%.

Since Boston Scientific's latest quarterly report on April 24, 2024, the stock price has increased by 0.5%. Comparatively, the stock has shown a remarkable year-over-year growth of 43.3%, outpacing the S&P 500, which has grown by 24% during the same period.

Larry Biegelsen, the Wells Fargo analyst who raised the price target on Boston Scientific, is recognized as one of Wall Street's top analysts. Ranked in the top 13% of 4,565 analysts by WallStreetZen, Biegelsen has achieved an average return of 4.9% and a win rate of 56.3%. Specializing in the Healthcare sector, Biegelsen's insights hold considerable weight in the industry.

Founded in 1979 and headquartered in Marlborough, MA, Boston Scientific Corporation is a leading manufacturer of medical devices used in interventional radiology, interventional cardiology, peripheral interventions, and neuromodulation. The company is renowned for its development of the Taxus Stent, a device used to open clogged arteries. Additionally, Boston Scientific gained prominence after acquiring Cameron Health in 2012, allowing them to offer the EMBLEM subcutaneous implantable defibrillator, a minimally invasive implantable cardioverter-defibrillator.

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