On Monday, Boston Scientific Corporation (NYSE:BSX), a medical devices company with an $18.6 billion market capitalization and "GREAT" financial health score according to InvestingPro, saw its price target increased by BTIG from $97.00 to $101.00, while the firm kept a "Buy" rating on the stock. The adjustment comes as BTIG analysts project a significant rise in U.S. revenue from Farapulse, a Boston Scientific product, by 2025.
The analysts at BTIG have revised their revenue forecast for Farapulse in the U.S. market to approximately $1.5 billion by 2025, an increase from the previous estimate of around $1 billion. This new projection is based on an updated analysis rather than the conservative estimates previously used, which were derived from fourth-quarter 2024 runrate figures. The company has demonstrated strong growth potential, with revenue increasing by 27.4% over the last twelve months.
According to BTIG, the heightened revenue expectations have also led to an upward revision of the adjusted earnings per share (EPS) for Boston Scientific for the years 2025 and 2026. Despite this change, the analysts have decided to maintain their existing margin assumptions.
The price target revision to $101 is a result of rolling forward BTIG's estimates to include the fourth quarter and applying the same 32x multiple on the anticipated adjusted EPS over the next 12 to 24 months. This multiple remains unchanged despite the higher earnings forecast.
Boston Scientific, which specializes in medical solutions, is expected to benefit from the growth in revenue from Farapulse, contributing to the positive outlook represented by BTIG's maintained "Buy" rating and the new price target. The broader analyst consensus remains strongly bullish, with price targets ranging from $234 to $340.
For deeper insights into BSX's valuation and growth prospects, including 12+ additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, healthcare stocks have become a focal point for analysts at Piper Sandler and RBC Capital.
Piper Sandler expressed optimism for several healthcare companies, including ATEC, ATRC, and KIDS, in anticipation of positive fiscal year outlooks. They also noted potential upside for consensus numbers for FNA and SIBN. RBC Capital, on the other hand, projected a favorable outlook for the Medical (TASE:PMCN) Supplies & Devices sector for 2025, highlighting stocks like Boston Scientific and Intuitive Surgical (NASDAQ:ISRG).
Insulet (NASDAQ:PODD) Corporation, a medical device company, has been in the spotlight due to recent developments. The company reported strong Q3 results and the FDA's clearance of its Omnipod 5 for type 2 diabetes. Insulet also won a $452 million trade secret case against EOFlow Co., Ltd. and other defendants for misappropriation of trade secrets. Barclays (LON:BARC) raised its price target for Insulet following the robust Q3 performance.
Procept BioRobotics, another healthcare company, has also been making strides in its financial performance and growth strategy. The company reported robust revenue growth of 66% in the third quarter. Morgan Stanley (NYSE:MS) initiated coverage on Procept BioRobotics with an Overweight rating, while Jefferies maintains a Hold rating on the company's stock.
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