On Wednesday, Truist Securities expressed a continued optimistic stance on Boston Scientific stock (NYSE:BSX), maintaining a Buy rating and a price target of $110.00. The company, currently valued at $141.4 billion, has demonstrated remarkable strength with a 62% return over the past year. According to InvestingPro analysis, the stock is trading near its Fair Value, with 18 key investment insights available to subscribers.
The firm's confidence is buoyed by Boston Scientific's recent announcement of its acquisition of Bolt Medical (TASE:PMCN), a private company specializing in intravascular lithotripsy (IVL) technology used in coronary and peripheral artery disease treatments.
Boston Scientific, which already owned approximately 26% of Bolt Medical, will acquire the remaining roughly 74% stake for an upfront payment of about $443 million, along with a contingent payment of approximately $221 million that hinges on reaching certain regulatory milestones. The acquisition is slated for completion in the first half of 2025. With revenue growth of 15.7% and an overall "GREAT" financial health score from InvestingPro, the company appears well-positioned for this strategic move.
The financial impact of the deal is expected to be slightly dilutive to Boston Scientific's adjusted earnings per share (EPS) in 2025. However, the company anticipates that any potential dilution will be fully counterbalanced by internal expense trade-offs.
Truist Securities views the acquisition as a cost-effective strategy for Boston Scientific to enter the rapidly expanding IVL market, a segment initially developed by Johnson & Johnson's Shockwave Medical (NASDAQ:SWAV) asset, which was acquired in April 2024. The transaction is seen as reinforcing the sustainability of double-digit growth projections for Boston Scientific in the coming years, as outlined by the firm's analysts.
In other recent news, Boston Scientific Corporation (NYSE:BSX) has announced its intention to acquire Bolt Medical, a developer of an innovative laser-based platform for treating artery disease. This strategic move is expected to expand Boston Scientific's cardiovascular product portfolio and marks its entry into the intravascular lithotripsy (IVL) market. The terms of the deal include an upfront payment of approximately $443 million for the remaining 74% stake in Bolt Medical. Analysts from firms such as BTIG have reacted positively to the news, reiterating a Buy rating on Boston Scientific.
In addition to this, Piper Sandler has reaffirmed an Overweight rating on Boston Scientific, highlighting the success of the Farapulse product and its potential contribution to the company's top-line growth. Truist Securities also maintained a Buy rating on Boston Scientific, citing the company's strategic acquisitions and strong revenue growth as contributing factors.
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