Key Highlights
- Raymond James lowered BSX rating from Strong Buy to Outperform while reducing the price target to $88 from $97.
- Decelerating performance in U.S. electrophysiology and Watchman divisions—responsible for more than 50% of annual growth—sparked analyst concerns.
- Shares touched a new 52-week low, declining approximately 30% from year-ago levels.
- Despite the downturn, BSX received FDA 510(k) clearance for its Asurys fluid management system and reported positive CHAMPION-AF trial outcomes.
- Multiple firms including Evercore ISI and Bernstein sustained Outperform ratings, with Stifel reaffirming Buy at a $90 target.
Boston Scientific faced significant headwinds on Monday as shares plummeted over 8%, reaching their lowest point in 52 weeks amid growing skepticism about the medical device manufacturer’s growth prospects.
Boston Scientific Corporation, BSX
The sharp decline followed a rating adjustment by Raymond James analyst Jayson Bedford, who moved BSX from Strong Buy to Outperform status. The firm simultaneously reduced its price objective to $88 from the previous $97 target. Bedford emphasized that Raymond James remains confident in the company’s long-term potential, describing BSX as “one of the highest quality, and fastest growing, companies in large cap Med Tech.” However, near-term projections required recalibration.
The primary concern centers on decelerating momentum in two of BSX’s most dynamic divisions. The U.S. electrophysiology segment and Watchman device collectively represented 26% of total 2025 revenue while contributing over half of the company’s year-over-year growth. Raymond James now projects these units will expand at 17% and 16% respectively over the coming two years—reduced from previous forecasts of 18% and 20%.
Regarding the EP business, fourth-quarter performance showed weakening trends alongside continued market share losses. Raymond James currently estimates EP growth of 15% in 2026 and 14% in 2027.
The Watchman situation presents a more nuanced outlook. CHAMPION-AF trial data delivered encouraging results—Raymond James noted the findings “takes a worst case ‘miss’ scenario off the table” while positioning the device for potential label expansion in 2027. However, recently published CLOSURE trial data in the New England Journal of Medicine continues to attract negative scrutiny and may present challenges for the device’s growth trajectory.
Shares Approach Annual Lows
Trading at approximately $65.26, BSX has fallen to its weakest level in a year. Over the past twelve months, the stock has declined roughly 30%, bringing the company’s market capitalization to around $102.8 billion.
Despite recent selling pressure, InvestingPro analysis suggests potential undervaluation. BSX has delivered nearly 20% revenue expansion and maintains a PEG ratio of 0.64. Raymond James also highlighted that BSX trades at approximately 18 times estimated 2027 earnings—below the peer group average of 21 times.
Encouraging Updates Despite Headwinds
Several positive developments offer balance to the negative sentiment. The FDA issued 510(k) clearance for BSX’s Asurys Fluid Management System, intended for endoscopic urologic applications. Additionally, the CHAMPION-AF trial demonstrated the Watchman device achieved comparable efficacy to NOAC anticoagulants while offering superior safety outcomes.
Stifel maintained its Buy recommendation on BSX following these trial results, setting a $90 price objective. Evercore ISI reaffirmed its Outperform stance, pointing to the company’s capability to sustain a 9% revenue compound annual growth rate through 2028. Bernstein similarly preserved its Outperform rating, albeit with a $112 price target that appears ambitious given current trading levels.
Raymond James adjusted its 2026 and 2027 revenue projections downward by approximately 0.5% and 1.5% respectively, while affirming that BSX’s long-term investment thesis remains fundamentally sound.
