Mizuho Securities analyst Anthony Petrone maintained a Hold rating on Boston Scientific (BSX – Research Report) on January 9 and set a price target of $65.00.
Anthony Petrone has given his Hold rating due to a combination of factors surrounding Boston Scientific’s recent acquisition and market positioning. The acquisition of Axonics, valued at $3.7 billion, brings Boston Scientific into the $900 million U.S. sacral neuromodulation (SNM) market, providing a full suite of solutions for incontinence which is seen as complementary to Boston Scientific’s existing Urology portfolio. Although the deal is expected to be highly accretive to revenues, it is projected to be immaterial to earnings per share (EPS) in the fiscal year 2024, with accretive impacts expected in the following years.
Furthermore, the preliminary fourth-quarter results from Axonics were better than expected, indicating a strong setup as the acquisition nears completion. This shows promise for organic revenue growth, which was already anticipated to be strong prior to the acquisition announcement. Despite these positive aspects, the Hold rating suggests that while there are clear benefits to Boston Scientific’s strategic positioning, the immediate financial impact may not warrant an upgraded rating at this time, and potential risks such as the absence of significant EPS contribution in the short term may have been considered.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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:
- NeuroPace price target raised to $17 from $12 at Lake Street
- Axonics downgraded to Peer Perform from Outperform at Wolfe Research
- Unusually active option classes on open January 8th
- M & A News: Boston Scientific (NYSE:BSX) to Acquire Axonics in $3.7B Deal
- Axonics to be acquired by Boston Scientific for $71 per share
