Key Takeaways
- Raymond James lowered BSX from Strong Buy to Outperform with a reduced price target from $97 to $88.
- Disappointing performance in U.S. electrophysiology and Watchman devices—representing over half of BSX’s annual growth—triggered the rating change.
- Shares reached a new 52-week low, declining approximately 30% over the past year.
- Recent developments include FDA clearance for BSX’s Asurys fluid management system and successful CHAMPION-AF trial results.
- Evercore ISI and Bernstein held Outperform ratings, with Stifel maintaining a Buy recommendation at $90.
Boston Scientific experienced significant selling pressure on Monday. Shares plunged more than 8%, reaching a 52-week low as investors reacted to heightened skepticism surrounding the medical device company’s growth trajectory.
Boston Scientific Corporation, BSX
The decline followed a rating adjustment by Raymond James analyst Jayson Bedford, who moved BSX from Strong Buy to Outperform. His revised price target dropped from $97 to $88. The firm emphasized its continued confidence in the company’s long-term prospects, describing BSX as “one of the highest quality, and fastest growing, companies in large cap Med Tech.” However, near-term projections required recalibration.
The central challenge involves momentum shifts in two of BSX’s leading growth drivers. U.S. electrophysiology and the Watchman device combined represented 26% of total revenue in 2025 while contributing more than half of BSX’s year-over-year sales expansion. Raymond James currently projects these segments will grow at 17% and 16% over the coming two years—reduced from previous forecasts of 18% and 20%.
Regarding the EP segment, fourth-quarter performance showed deceleration alongside continued market share losses. Raymond James currently anticipates EP growth rates of 15% and 14% for 2026 and 2027 respectively.
Watchman presents a more nuanced situation. The CHAMPION-AF trial delivered encouraging results—Raymond James noted the findings “takes a worst case ‘miss’ scenario off the table” while positioning the device for possible label expansion in 2027. However, CLOSURE trial data published in the New England Journal of Medicine continues attracting unfavorable commentary and may complicate growth prospects for the device.
Shares Trading Near Yearly Bottom
Trading around $65.26, BSX approaches its lowest price point in a year. The stock has declined roughly 30% over the trailing 12 months, bringing the company’s market capitalization to approximately $102.8 billion.
Despite downward pressure, InvestingPro data suggests the stock could be undervalued. BSX has delivered close to 20% revenue expansion and maintains a PEG ratio of 0.64. Raymond James highlighted that BSX trades at roughly 18 times projected 2027 earnings—below the peer group average of 21 times.
Favorable Catalysts Emerging
Several positive developments have materialized recently. The FDA issued 510(k) clearance for BSX’s Asurys Fluid Management System, intended for endoscopic urologic procedures. The CHAMPION-AF trial demonstrated the Watchman device achieved comparable efficacy to NOAC blood thinners while offering safety benefits.
Stifel maintained its Buy rating on BSX following these outcomes, setting a $90 price target. Evercore ISI reaffirmed Outperform, highlighting the company’s capacity to sustain a 9% revenue compound annual growth rate through 2028. Bernstein likewise preserved its Outperform rating, though with a $112 price target that appears ambitious given current trading levels.
Raymond James reduced 2026 and 2027 revenue projections by approximately 0.5% and 1.5% respectively, while preserving the perspective that BSX’s long-term foundation remains sound.
