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Boston Scientific shares hold as analyst reiterates buy rating

Published 09/28/2024, 12:04 AM
BSX
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TD Cowen maintained a positive outlook on Boston Scientific shares (NYSE:BSX), reaffirming a Buy rating alongside an $86.00 price target. The firm's optimism is partly due to Boston Scientific's continued efforts to introduce its key products to the Japanese market. This strategy follows the successful launches of Watchman 2.5 and FLX in 2019 and 2021, respectively, and comes in anticipation of the TAVR product expected in 2025.

Boston Scientific is set to launch Farapulse in Japan shortly after receiving reimbursement approval. This move is part of the company's broader market strategy, despite expectations that the developments in the US PFA market might overshadow Farapulse's entry into Japan. The company's ongoing expansion in Japan signifies its commitment to growing its international presence.

The analyst from TD Cowen highlighted the strategic significance of this expansion, noting that Boston Scientific is not only launching Farapulse but also planning to initiate a concomitant trial combining Farapulse with Watchman in Japan at the beginning of 2025.

Boston Scientific's stock price target of $86.00 by TD Cowen reflects confidence in the company's growth trajectory and its ability to capitalize on market opportunities. The firm's reiteration of the Buy rating underlines a positive forecast for the stock's performance.

Investors and market watchers are likely to keep a close eye on Boston Scientific as it continues to make strides in Japan, a key market for medical devices. The company's strategic moves, including product launches and clinical trials, are expected to contribute to its long-term growth and market position.

Boston Scientific Corporation (NYSE:BSX) has made significant strides in its operations. The company received approval from Japan's Pharmaceuticals and Medical Device Agency for its FARAPULSE Pulsed Field Ablation System, with plans to launch the system in Japan in the coming weeks. Boston Scientific also completed its acquisition of Silk Road Medical (NASDAQ:SILK), integrating the company's innovative transcarotid artery revascularization procedure into its portfolio.

Boston Scientific received approval from the U.S. Food and Drug Administration to expand the use of its INGEVITY+ Pacing Leads for conduction system pacing and sensing in the left bundle branch area. BofA Securities and Piper Sandler maintained their ratings on Boston Scientific's shares, citing the company's potential for sustained growth.

Boston Scientific reported substantial increases in revenue and adjusted earnings per share for the second quarter, exceeding expectations. The company is preparing for the OPTION-A clinical trial in early 2025 across Japan, China, Taiwan, and Hong Kong, and the launches of the FARAVIEW software module and FARAWAVE Nav-enabled catheter later this year.

InvestingPro Insights

Boston Scientific's strategic expansion in Japan aligns well with its strong financial performance and market position. According to InvestingPro data, the company's revenue grew by 13.65% over the last twelve months, reaching $15.23 billion. This growth is reflected in the stock's impressive performance, with a 59.46% price return over the past year.

InvestingPro Tips highlight that Boston Scientific is a prominent player in the Healthcare Equipment & Supplies industry, trading near its 52-week high. The company's net income is expected to grow this year, which supports TD Cowen's optimistic outlook. Additionally, Boston Scientific operates with a moderate level of debt, suggesting financial stability as it pursues international expansion.

For investors seeking a deeper understanding of Boston Scientific's potential, InvestingPro offers 16 additional tips, providing a comprehensive analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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