On Tuesday, Citi analyst reaffirmed a Buy rating and a $107.00 price target for Boston Scientific stock (NYSE:BSX). Wuensch's commentary followed Boston Scientific's confirmation of its 2024 financial guidance during a meeting in San Francisco.
The company is on track to achieve 15% organic revenue growth and an increase in operating margins by more than 70 basis points year-over-year, which aligns with previous expectations of approximately 27%. This is anticipated to result in an approximate 20-21% year-over-year growth in earnings per share (EPS), with figures estimated to be between $2.45 and $2.47, consistent with prior guidance.
Boston Scientific also provided preliminary insights into its expectations for 2025, predicting that organic growth will surpass that of 2024, with 2026 expected to exceed 2025. The company foresees a high-teens organic revenue compound annual growth rate (CAGR) from 2024 to 2026, which significantly outpaces the long-range plan (LRP) previously set at an 8-10% increase.
The company's growth strategy includes capitalizing on the expanding global atrial fibrillation market, which is projected to grow from $6.5 billion in 2024 to $10 billion in 2026, representing a CAGR of over 25%. Within this market, Boston Scientific estimates that pulsed field ablation (PFA) will account for approximately 20% of global atrial fibrillation cases in 2024, with expectations to expand to 40-50% in 2025, and over 60% by 2026.
In addition to PFA, Boston Scientific highlighted other key growth drivers for 2025, including the Watchman FLX Pro and Agent DCB products. Wuensch's endorsement of Boston Scientific as a Buy/Top Pick reflects confidence in the company's growth trajectory and its potential to exceed long-term revenue targets.
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