Wall Street’s Upbeat on Boston Scientific: Most Recommend a ‘Buy’



Analyst recommendations for BSX

Boston Scientific (BSX) registered a strong 2Q17 performance on July 27, 2017. It continues to strengthen its position as one of the leading medical device industries in the United States. It offers minimally invasive technology solutions to patients suffering from various medical conditions. Let’s take a look at analysts’ recommendations and target prices for Boston Scientific over the next year.

In a Reuters survey of 24 brokerage firms, 75.0% (or 18) of them gave a “buy” recommendation for Boston Scientific stock. About 25.0% (or six) rated the company a “hold,” and none of them recommended a “sell.”

The above chart shows the recommendation summary for Boston Scientific over the next 12 months. As of August 31, 2017, the consensus 12-month target price for BSX stock is $30.89, which is a 14.1% return potential on the basis of its closing price of $27.08 on August 30, 2017.

Investors can consider the Vanguard S&P 500 ETF (VOO) for diversified exposure to Boston Scientific. VOO invests ~0.18% of its total holdings in Boston Scientific.

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Analysts’ target prices and revised recommendations

According to the latest recommendations by Wall Street analysts on BSX stock, the lowest one-year target price is $24, representing a -11.4% maximum downside risk potential over the next year. The highest one-year target price for Boston Scientific is $34, which represents the maximum return potential of 25.6% over the next year.

A number of investment banking firms and brokerages provided ratings and recommendations on BSX stock after its earnings release on July 27, 2017. On August 9, 2017, Oppenheimer reiterated a “hold” rating for the stock. On August 1, 2017, UBS reiterated its “buy” rating and increased its price target from $30 to $31. On July 30, 2017, Stifel Nicolaus reiterated its “buy” rating on BSX stock and provided a price target of $32.

As of August 31, 2017, Boston Scientific’s peers Medtronic (MDT), Zimmer Biomet Holdings (ZBH), and Intuitive Surgical (ISRG) have average broker target prices of $91.40, $135.60, and $1,010.90, respectively. These targets represent returns of 14.5%, 20.0%, and 1.5%, respectively, over the next year.

Next, let’s look at BSX’s 2Q17 earnings highlights.


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