On Friday, Deutsche Bank (ETR:DBKGn) analysts raised their rating on Boston Scientific (NYSE:NYSE:BSX) shares from Hold to Buy, increasing their price target to $108 from the previous $87.
The analysts expressed confidence in the company's prospects, citing Boston Scientific's position as a leading name in the medical technology sector and its potential to outperform in 2025.
The narrative surrounding Boston Scientific has simplified, and the company is well-positioned for growth, with expectations to surpass performance benchmarks in the upcoming year. The new price target of $108 is based on 34 times the firm's estimated earnings per share for 2026.
Despite the optimistic outlook, analysts acknowledged several risks to their positive thesis. They pointed out that Boston Scientific is already a popular stock among investors, which raises the question of who the new buyers might be. Additionally, they adjusted their market share expectations for Boston Scientific's PFA product, considering potential competitive pressures from Johnson & Johnson (NYSE:JNJ)'s Varipulse.
Hospital capacity constraints that could affect volumes of left atrial appendage occlusion (LAAO) procedures were also mentioned as a potential risk. The analysts expect that new structural heart therapies, such as Evoque, might build momentum and affect Boston Scientific's market share.
The report also discussed the mixed feedback from clinicians regarding the Laminar device, which is expected to compete with Boston Scientific's WATCHMAN device for market share. While some physicians are enthusiastic about Laminar's potential, others do not see a significant advantage over the current options.
Lastly, the analysts expressed concern that high expectations for Boston Scientific could lead to severe market reactions if the company encounters any execution issues. They said "while BSX has a good track record over the past few years, it's not perfect as its unsuccessful attempts to get into the TAVR market have shown."
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