On Thursday, Mizuho Securities adjusted its outlook on Boston Scientific Corporation (NYSE:BSX), increasing the price target to $85 from the previous $80, while reiterating a Buy rating for the stock.
The firm's analysis is based on the company's robust performance in the first quarter of 2024, which saw a 13% year-over-year increase in revenue, surpassing the initial guidance of 7-9%. This growth was attributed to contributions from the FARAPULSE PFA, strong results from WATCHMAN devices, and overall healthy procedural demand.
Boston Scientific's recent success is seen as a testament to its strategic portfolio positioning and the sustained high demand for its medical technologies. The early stages of the FARAPULSE PFA's launch in the United States, along with optimistic prospects for WATCHMAN's label expansions, are expected to contribute to the company's continued growth.
Additionally, the anticipated acquisition of Axonics, Inc. (referred to as AXNX in the context), has not yet been finalized, which could further enhance the company's market position.
The firm's long-range projections for Boston Scientific anticipate a sustainable low double-digit growth profile, which may lead to an upward revision of its long-range plan (LRP) growth estimates for the period from 2024 to 2026. The LRP currently forecasts an 8-10% growth range, which could be increased in the next one to two years based on the company's performance trajectory.
In light of these developments, Mizuho Securities has updated its financial models for Boston Scientific, which supports the revised price target of $85. This adjustment reflects the analyst's confidence in the company's growth prospects and its ability to maintain a strong position in the medical technology sector.
The firm's positive outlook remains intact despite the lowered price target, emphasizing the underlying strength of Boston Scientific's business operations and market strategy.
InvestingPro Insights
In the context of Boston Scientific's (NYSE:BSX) promising performance, InvestingPro data provides additional insights. The company's market capitalization stands at a robust $107.2 billion, reflecting investor confidence. A noteworthy metric is the company's revenue growth in the last twelve months as of Q1 2024, which climbed by 12.74%, aligning with the robust quarterly growth figures cited by Mizuho Securities. This growth is further underpinned by a strong gross profit margin of 69.05%, showcasing the company's efficiency in managing its cost of goods sold.
From an investment perspective, two InvestingPro Tips stand out. Firstly, analysts have revised their earnings upwards for the upcoming period, indicating that the market anticipates continued strong performance from Boston Scientific. This aligns with the positive assessment provided by Mizuho Securities. Secondly, the company is trading at a high earnings multiple, which typically suggests that investors are willing to pay a premium for expected growth and profitability.
For those looking to delve deeper into Boston Scientific's financials and market predictions, InvestingPro offers additional tips. There are currently 15 more InvestingPro Tips available to help investors make informed decisions. For exclusive access to these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/BSX.
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