On Tuesday, Baird maintained its positive stance on Boston Scientific Corporation (NYSE:BSX) shares, increasing the price target to $90 from $84 while reiterating an Outperform rating. The firm's analyst highlighted the substantial and enduring potential upside for the company, driven by its Farapulse product line.
Boston Scientific is expected to generate over $700 million in revenue from Farapulse in the fiscal year 2024. This performance is anticipated to contribute over 20% growth to the company's Electrophysiology (EP) revenue and provide a 150-200 basis points boost to the total revenue estimates for the year.
Looking further ahead, projections for the year 2026 indicate that PFA/Farapulse could nearly reach a $1.2 billion revenue mark. In an optimistic scenario, the analyst suggests that PFA could bring in more than $900 million in the fiscal year 2024 and potentially $1.5 billion by 2026.
The potential increase in revenue is not only limited to the Farapulse line but could also be supported by a broader range of EP products, including diagnostic, mapping, access, intracardiac echocardiography (ICE (NYSE:ICE)), and treatment for supraventricular tachycardia (SVT) and ventricular tachycardia (VT).
The analyst believes that such a robust product pipeline could sustainably elevate Boston Scientific's total revenue and earnings per share (EPS) growth to low double digits or mid-teens, respectively. This growth trajectory presents a scenario where the stock could potentially reach a $100 valuation.
In other recent news, Boston Scientific Corporation has been the subject of several analyst notes. Goldman Sachs (NYSE:GS) initiated coverage on Boston Scientific with a Buy rating, citing the company's anticipated product launches and revenue growth.
Argus raised its price target for the company to $95.00, reflecting Boston Scientific's robust performance across all business segments. TD Cowen maintained its Buy rating on Boston Scientific, highlighting the success of Farapulse, a product that has treated 70,000 patients worldwide.
In addition to these financial developments, Boston Scientific has elected Dr. Cheryl Pegus to its board of directors, leveraging her extensive experience in clinical and business leadership roles.
Lastly, Oppenheimer increased its price target for Boston Scientific to $77.00 following the company's first-quarter sales that significantly exceeded expectations. The company's earnings per share for the first quarter also surpassed estimates, coming in at $0.56 compared to the anticipated $0.51. These are recent developments that investors should take into account.
InvestingPro Insights
As Boston Scientific Corporation (NYSE:BSX) positions itself for a robust growth trajectory, real-time data and InvestingPro Tips provide additional context for investors. According to InvestingPro, Boston Scientific is anticipated to experience net income growth this year, with 19 analysts having revised their earnings upwards for the upcoming period. This aligns with Baird's positive outlook and the expected revenue surge from the Farapulse product line. The company is also trading at a low P/E ratio relative to near-term earnings growth, highlighting a potentially attractive valuation for investors.
InvestingPro Data underscores the financial health of Boston Scientific, with a strong market capitalization of $113.82 billion and a revenue growth of 12.74% in the last twelve months as of Q1 2024. Additionally, the company boasts a gross profit margin of 69.0%, indicating efficient operations and profitability. With the stock trading near its 52-week high and a price total return of 50.98% over the last year, Boston Scientific demonstrates a compelling investment profile.
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