BTIG analyst Marie Thibault has increased the price target for Boston Scientific (BSX, Financial) from $120 to $124 while maintaining a Buy rating. This adjustment follows the company's recent quarterly earnings report, which highlighted robust sales, particularly in the cardiology segment.
The firm forecasts Boston Scientific to continue performing well as a high-quality MedTech stock. The new price target is based on a 36x multiple of the company's adjusted earnings per share over the next 12 to 24 months.
Boston Scientific's management attributes its strong performance to increased sales in cardiology, favorable foreign exchange rates, and strategic reductions in discretionary spending. These factors are expected to help the company manage approximately $200 million in tariff impacts anticipated in the latter half of 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 30 analysts, the average target price for Boston Scientific Corp (BSX, Financial) is $116.34 with a high estimate of $130.00 and a low estimate of $84.11. The average target implies an upside of 17.46% from the current price of $99.04. More detailed estimate data can be found on the Boston Scientific Corp (BSX) Forecast page.
Based on the consensus recommendation from 34 brokerage firms, Boston Scientific Corp's (BSX, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Boston Scientific Corp (BSX, Financial) in one year is $76.97, suggesting a downside of 22.28% from the current price of $99.04. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Boston Scientific Corp (BSX) Summary page.
Key Business Developments
Release Date: February 05, 2025
- Q4 2024 Revenue: $4.561 billion, 22.4% reported growth.
- Q4 2024 Organic Revenue Growth: 19.5%.
- Full Year 2024 Revenue: $16.747 billion, 17.6% reported growth.
- Full Year 2024 Organic Revenue Growth: 16.4%.
- Q4 2024 Adjusted EPS: $0.70, 26% growth.
- Full Year 2024 Adjusted EPS: $2.51, 22% growth.
- Q4 2024 Adjusted Operating Margin: 27.4%.
- Full Year 2024 Adjusted Operating Margin: 27.0%, 70 basis points improvement.
- Q4 2024 Adjusted Gross Margin: 70.6%.
- Full Year 2024 Free Cash Flow: $2.648 billion.
- Q4 2024 Free Cash Flow: $1.181 billion.
- 2025 Organic Revenue Growth Guidance: 10% to 12%.
- 2025 Adjusted EPS Guidance: $2.80 to $2.87, 12% to 14% growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Boston Scientific Corp (BSX, Financial) achieved a 23% growth in operational sales and a 20% growth in organic sales for Q4 2024, surpassing their guidance range.
- The company reported a 26% increase in adjusted EPS for Q4 2024, exceeding the high end of their guidance range.
- Strong performance in the Electrophysiology segment, with FARAPULSE leading the transformation of the AFib market, achieving over $1 billion in revenue globally in 2024.
- The Urology segment showed robust growth, driven by prosthetic urology and stone management, with key product launches contributing to this success.
- Boston Scientific Corp (BSX) anticipates continued strong financial performance in 2025, with expected organic growth of 10% to 12% for the full year and adjusted EPS growth of 12% to 14%.
Negative Points
- The company faces ongoing pricing pressures in China due to DBP, which could impact growth despite strong performance in the region.
- Increased competition from lower-cost competitors in some MedSurg businesses, particularly in Asia and Europe, poses a challenge.
- The Neuromodulation segment showed slower organic growth compared to operational growth, indicating potential areas for improvement.
- Boston Scientific Corp (BSX) anticipates a 200 to 300 basis point increase in the tax rate, which could impact EPS growth.
- The company is facing potential headwinds from tariffs and foreign exchange fluctuations, which have been factored into their guidance.
