RBC Capital has elevated its price target for Boston Scientific (BSX, Financial) shares, revising it from $116 to $120, while maintaining an Outperform rating. The adjustment comes on the heels of the company's robust first-quarter performance, which has impressed analysts and strengthened their confidence in its market position.
The investment firm highlights Boston Scientific as a standout among large-cap MedTech companies, noting its strong trajectory for the current year and future prospects. This optimistic outlook is backed by the company's latest financial results, signaling promising potential for continued growth.
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 $116.90 with a high estimate of $130.00 and a low estimate of $84.11. The average target implies an upside of 18.18% from the current price of $98.92. 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 22.19% from the current price of $98.92. 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.
BSX Key Business Developments
Release Date: April 23, 2025
- Total Company Operational Sales Growth: 22% in Q1 2025.
- Organic Sales Growth: 18% in Q1 2025.
- Adjusted EPS: $0.75, a 34% increase, exceeding guidance range.
- Adjusted Operating Margin: 28.9% in Q1 2025.
- Consolidated Revenue: $4.663 billion, 20.9% reported growth.
- Adjusted Gross Margin: 71.5%, a 170-basis-point improvement.
- Free Cash Flow: $354 million in Q1 2025.
- Cash on Hand: $725 million as of March 31, 2025.
- Gross Debt Leverage Ratio: 2.2 times.
- Full-Year Organic Revenue Growth Guidance: Raised to 12% to 14%.
- Full-Year Adjusted EPS Guidance: $2.87 to $2.94, growth of 14% to 17%.
- Second-Quarter Organic Growth Guidance: 13% to 15%.
- Second-Quarter Adjusted EPS Guidance: $0.71 to $0.73.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Boston Scientific Corp (BSX, Financial) reported a strong Q1 2025 with operational sales growth of 22% and organic sales growth of 18%, exceeding guidance.
- Adjusted EPS for Q1 2025 was $0.75, a 34% increase, surpassing the guidance range.
- The company raised its full-year 2025 organic growth guidance from 10%-12% to 12%-14%, reflecting strong performance in its cardiology portfolio.
- Electrophysiology sales grew 145%, making Boston Scientific the number two player globally in this segment.
- The company received credit rating upgrades to A- from both Standard & Poor's and Fitch Ratings, indicating strong financial health.
Negative Points
- Boston Scientific faces a $200 million tariff impact in 2025, primarily affecting the second half of the year.
- The Cardiac Rhythm Management segment showed only 1% growth, slightly below market expectations.
- The Urology segment experienced supply chain issues, leading to backorders and impacting growth.
- Foreign exchange headwinds negatively impacted Q1 2025 revenue by 130 basis points.
- The company anticipates a potential 200-300 basis point increase in its tax rate in 2026 due to the sunsetting of the TCJA.
