Let’s look at Wall Street analysts’ recommendations and target prices for Boston Scientific (BSX) over the next 12 months. In a Reuters survey of 25 brokerage companies on May 26, 2017, ~76% of analysts rated BSX as a “buy,” and 24% rated it as a “hold.”
None of the analysts surveyed rated Boston Scientific as a “sell.” BSX is one of the leading medical technology companies in the United States. It offers less invasive technologies for various medical conditions. For a brief company overview, read A Must-Read Company Overview of Boston Scientific.
The table above provides a recommendation summary for Boston Scientific over the next year. The consensus 12-month target price for Boston Scientific is $29.4, a potential return of ~7.9% compared to its current price of $27.2 as of May 25, 2017.
According to analysts’ most recent recommendations, the lowest one-year target price for Boston Scientific is $24, implying an ~-11.8% return potential over the next 12 months. On the other hand, Boston Scientific’s highest one-year target price is $33, implying a ~21.3% return potential over the next 12 months.
Peers Edwards Lifesciences (EW), Medtronic (MDT), and Abbott Laboratories (ABT) have average broker target prices of $122.1, $91.2, and $48.1, respectively. These figures imply potential returns of 7%, 6.5%, and 9.4%, respectively, in the next 12 months.
ETFs with exposure to Boston Scientific
Investors interested in gaining focused exposure to Boston Scientific can consider investing in the iShares U.S. Medical Devices ETF (IHI). IHI has ~5% of its total holdings in Boston Scientific. IHI is one of the largest US medical device ETFs and tracks the Dow Jones U.S. Select Medical Equipment Index.
You may want to consider investing in healthcare sector ETFs such as the Health Care Select Sector SPDR ETF (XLV) for exposure to Boston Scientific. For more diversified exposure to reduce company- and stock-specific risks, you can invest in the iShares Russell 1000 Growth ETF (IWF), which has ~0.31% of its total holdings in Boston Scientific. IWF tracks the Russell 1000 Growth Index.