Jefferies Raised Its Recommendation on BSX Stock



Jefferies updates its recommendation on Boston Scientific

On September 4, Jefferies (JEF) upgraded its recommendation on Boston Scientific (BSX) from “hold” to “buy.” The brokerage has a target price of $42 on Boston Scientific. Needham also raised its target price on Boston Scientific on September 7. This shows that the Wall Street is increasingly confident about Boston Scientific’s growth prospects.

Although the stock reached its 14-year high yesterday, it’s still expected to have an upside potential of ~4.0% according to Wall Street analysts. BSX’s recent stock price performance in comparison to peers is shown in the chart below.

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Jefferies expects TAVR growth to drive Boston Scientific’s growth

According to Jefferies analyst Raj Denhoy, the brokerage conducted a survey that showed keen interest from the physicians in the US TAVR (transcatheter aortic valve replacement) market for Boston Scientific’s Lotus valve. Jefferies expects the valve to gain ~12% of the global TAVR market share in 2020. Denhoy said that Boston Scientific’s TAVR business is expected to register stable growth at ~7.0% from 2018 to 2020.

Jefferies’ earnings estimates for Boston Scientific

Jefferies expects Boston Scientific to report EPS of $1.60 in fiscal 2019, $1.82 in fiscal 2020, $2.09 in fiscal 2021, and $2.34 in fiscal 2022.

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