On Friday, Stifel, a financial services company, increased its price target for Boston Scientific (NYSE:BSX) shares to $100, up from the previous $85, while maintaining a Buy rating on the stock. The adjustment comes ahead of the anticipated November 15, 2024, read-out of the OPTION trial results at the American Heart Association (AHA) 2024 event.
The OPTION trial is a significant study for Boston Scientific as it evaluates the potential market expansion for its left-atrial-appendage-closure (LAAC) device, WATCHMAN, which is projected to account for approximately 9% of the company's sales in 2024. The trial is comparing the outcomes of patients who have undergone atrial fibrillation ablation and are randomized to receive either the WATCHMAN device or standard blood thinners.
If the trial shows that WATCHMAN is non-inferior to standard-of-care drugs, it could mean that the LAAC device would be available to a new demographic, specifically post-atrial fibrillation ablation patients. This group is estimated to be between 1 and 2 million patients, representing a substantial increase in the total addressable market for the WATCHMAN device.
In preparation for the potential impact of the OPTION trial's results, Stifel conducted a survey of thirty electrophysiologists and held three in-depth conversations with physicians. These efforts were aimed at understanding the potential effect of positive trial data on the growth of the WATCHMAN device.
Boston Scientific's stock price target increase reflects the optimism surrounding the upcoming trial results and the company's growth prospects in the LAAC device market. The financial community and Boston Scientific stakeholders are likely to closely monitor the outcome of the OPTION trial, which could significantly influence the company's future sales trajectory.
In other recent news, Boston Scientific has been the subject of several significant developments. The company has notably surpassed second-quarter expectations with increases in revenue and adjusted earnings per share. Boston Scientific's acquisition of Silk Road Medical (NASDAQ:SILK) was completed, expanding its portfolio with an innovative transcarotid artery revascularization procedure.
Analyst firms Baird and TD Cowen have adjusted their outlooks on Boston Scientific, with Baird raising the stock target to $100 and TD Cowen reaffirming its Buy rating. These adjustments come in anticipation of a strong third-quarter performance and confidence in upcoming Acurate IDE trial results. Furthermore, Boston Scientific received approval from Japan's Pharmaceuticals and Medical Device Agency for its FARAPULSE Pulsed Field Ablation System, with plans to launch in Japan.
The U.S. Food and Drug Administration also approved the expansion of the use of Boston Scientific's INGEVITY+ Pacing Leads. These are recent developments that highlight Boston Scientific's ongoing commitment to innovation and growth.
InvestingPro Insights
Boston Scientific's recent stock price target increase by Stifel aligns with several positive indicators from InvestingPro data. The company's market capitalization stands at an impressive $127.26 billion, reflecting its strong position in the Healthcare Equipment & Supplies industry. Boston Scientific has demonstrated robust growth, with revenue increasing by 13.65% over the last twelve months to $15.23 billion, and a quarterly revenue growth of 14.48% in Q2 2024.
InvestingPro Tips highlight that 23 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company's financial performance. This optimism is further supported by the expectation that net income will grow this year. The company's strong market position is evident from its high return over the last year, with a one-year price total return of 70.42%.
These insights complement the article's focus on Boston Scientific's potential market expansion through the WATCHMAN device. The company's financial strength and market performance provide a solid foundation for the anticipated growth in the LAAC device market, pending the OPTION trial results.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Boston Scientific, providing a deeper understanding of the company's financial health and market position.
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