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Why Analysts Are Mostly Positive on Boston Scientific Stock

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Nov. 28 2018, Updated 12:35 p.m. ET

Stock performance

Boston Scientific (BSX) stock rose from $24.79 at the close of market on December 29, 2017, to $34.80 at the close of market on November 23, 2018, reflecting a rise of ~40% year-to-date. On November 23, Boston Scientific stock closed at $34.80, a ~42% rise from its 52-week low of $24.54 on December 6, 2017.

Boston Scientific hit its 52-week high of $39.44 on October 2.

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Financials in a nutshell

Boston Scientific’s net sales in the first nine months of this year totaled $7.3 billion compared to $6.6 billion in the same period of the previous year, reflecting ~9% YoY growth. In the third quarter, Boston Scientific’s medical equipment peers Zimmer Biomet Holdings (ZBH), Edwards Lifesciences (EW), and Stryker (SYK) reported revenues of $1.8 billion, $906.6 million, and $3.2 billion, respectively, reflecting rises of ~1.02%, ~8.12%, and 7.85%, respectively, YoY.

The revenue growth of Boston Scientific, Zimmer Biomet Holdings, Edwards Lifesciences, and Stryker could boost the share price of the iShares U.S. Medical Devices ETF (IHI). BSX, ZBH, EW, and SYK make up ~4.93%, ~2.86%, ~3.70%, and 5.16% of IHI’s total portfolio holdings, respectively.

The company reported a gross profit of $5.2 billion in the first nine months of 2018 compared to $4.7 billion in the same period of 2017.

Boston Scientific’s net income and diluted EPS in the first nine months of 2018 amounted to $1.3 billion and $0.92, respectively, compared to $719.0 million and $0.52, respectively, in the same period of the previous year.

After its third-quarter financial results, Boston Scientific updated its full-year financial guidance. The company expects its net revenue in 2018 to be in the range of $9.79 billion–$9.83 billion.

Analysts’ recommendations

Of the 22 analysts tracking Boston Scientific stock in November, 15 have given it “strong buys,” while five have given it “buys.” Two analysts have given it “holds.”

On November 26, Boston Scientific had a consensus 12-month target price of $42.29, which represents a potential ~21.52% return on investment over the next 12 months.

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