Wall Street’s Views on Boston Scientific after Its 3Q17 Earnings
Analysts’ recommendations on Boston Scientific
Boston Scientific (BSX) released its 3Q17 earnings results on October 26, 2017. The company’s 3Q17 sales exceeded analysts’ expectations, and its adjusted earnings per share (or EPS) met estimates. The company also made an upward revision to its fiscal 2017 guidance.
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Let’s look at Wall Street analysts’ ratings and recommendations on Boston Scientific stock for the next 12 months. On October 31, 2017, according to the estimates provided by 25 brokerage firms in a Reuters survey, Boston Scientific was given a “buy” rating by around 75% (or 19) of the firms.
Ten of these analysts provided a “strong buy” recommendation on the stock. Around 24% (or six) of the companies recommended a “hold” on BSX stock. None of the analysts provided a “sell” rating on Boston Scientific stock.
The chart above shows the recommendation summary for Boston Scientific over the next 12 months. The consensus analysts’ price for BSX stock is $31.90, representing a 12-month return potential of ~13.1%. The return is based on the stock’s closing price of $28.20 on October 30, 2017.
Analysts are upbeat on the stock despite its fall on the day its 3Q17 earnings results were announced. This is due to the strong growth prospects of the company, driven by its strong product pipeline and market position.
Recommendations on peers
Peers Edwards Lifesciences (EW), Medtronic (MDT), and Thermo Fisher Scientific (TMO) have consensus analysts’ price targets of $129.40, $90.00, and $219.10, respectively, over the next 12 months. These prices represent potential 12-month returns of 27.3%, 11.7%, and 14.1%, respectively.
Investors can consider investing in the Vanguard S&P 500 ETF (VOO) for diversifying the unsystematic risk exposure to Boston Scientific. BSX accounts for ~0.18% of VOO’s total portfolio holdings.