Bank of America Securities analyst Travis Steed maintained a Buy rating on Boston Scientific (BSX – Research Report) yesterday and set a price target of $60.00.
Travis Steed has given his Buy rating due to a combination of factors surrounding Boston Scientific’s strategic acquisition and growth prospects. Steed identifies the purchase of Axonics (AXNX) as a value-aligned deal, with Boston Scientific paying a fair multiple of 7.7x sales, which aligns with historical medtech M&A premiums. The acquisition is also viewed as a strategic fit, enhancing Boston Scientific’s existing Urology portfolio and offering the potential for significant growth in a high-growth market segment. Steed believes that the acquisition will have a positive impact on both revenue growth and margins, without causing significant upfront earnings or margin dilution.
Furthermore, Steed emphasizes the deal’s potential to add 40-50 basis points to Boston Scientific’s overall organic growth rate and markedly more to its urology business segment. This aligns with the company’s long-term growth plan and leverages the expanding sacral neuromodulation market, which is projected to grow robustly over the next five years. Steed’s confidence is also underpinned by Boston Scientific’s expectations for the acquisition to be minimally impactful to earnings per share in 2024 and accretive thereafter, with a similar positive outlook for adjusted operating margins after the initial two-year period. This strategic rationale and financial forecast form the basis of Steed’s Buy rating on Boston Scientific.
In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $60.00 price target.
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Boston Scientific (BSX) Company Description:
Boston Scientific Corporation engages in the manufacturing of medical devices and products that are used in various interventional medical specialties worldwide. The company provides implantable devices including heart monitors, technologies for treating coronary artery disease and other cardiovascular disorders, and devices for diagnosing and treating gastrointestinal and pulmonary problems.
Read More on BSX:
- M & A News: Boston Scientific (NYSE:BSX) to Acquire Axonics in $3.7B Deal
- Boston Scientific Announces Agreement to Acquire Axonics, Inc.
- Edwards Lifesciences downgraded to In Line from Outperform at Evercore ISI
- Boston Scientific price target raised to $70 from $64 at BTIG
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