Analysts’ views on BSX’s Cryterion Medical acquisition
Boston Scientific (BSX) announced its acquisition of Cryterion Medical late last week. Needham & Company analyst Mike Matson said in a research note that Cryterion’s technology is a potential competitive product for some of the major players in the cryoablation therapy market space for the treatment of atrial fibrillation.
As per Matson, “The Cryterion platform adds single-shot cryo-ablation technology to Boston Scientific’s AF portfolio, which currently includes single-shot RF technology, and mapping technology. We view this deal as potentially negative for Abbott and Medtronic, (which has been gaining share with its Arctic Front cryoballoon) depending on Cryterion’s clinical and regulatory progress.”
Evercore ISI analyst Vijay Kumar has a “neutral” rating on BSX stock with a target price of $29. As per Kumar, if Boston Scientific is able to capture even half of its new growth potential, it’s expected to generate $40 million–$50 million in sales from Cryterion Medical by 2021–2022.
Consensus target price and recommendation updates
As of July 10, Boston Scientific has a consensus target price of $33.63, which represents a potential downside of ~0.47% over the next 12 months. However, as per a Reuters survey, more than 80% (or 20) of the total 24 analysts covering BSX have “strong buy” or “buy” ratings on the stock, while the remaining four have “hold” ratings on the stock. No analysts view BSX as a “sell.” These recommendations show Wall Street’s confidence in Boston Scientific, which has been boosted by the company’s strong product portfolio and attractive product pipeline.
Today, BMO Capital Markets raised its target price on BSX from $32 to $36. Late last month, on June 28, Bernstein initiated coverage on BSX stock with an “outperform” rating and a price target of $38. On the same day, Bernstein also initiated coverage on BSX’s competitor Abbott Laboratories (ABT) with an “outperform” rating. BSX’s peers Medtronic (MDT), Johnson & Johnson (JNJ), and Edwards Lifesciences (EW) were initiated with “market perform” ratings.
In the next article, we’ll take a look at Boston Scientific’s inorganic growth strategy.