Boston Scientific (NYSE:BSX) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Boston Scientific to “Hold”, although broader analyst sentiment remains a “Moderate Buy,” with 24 Buy, five Hold, and two Sell ratings and an average price target of $71.62.
• Boston Scientific’s second-quarter results beat expectations, with EPS of $0.86 and revenue of $5.44 billion, up 7.5% year over year. The company also authorized a $5 billion share-repurchase program, covering up to 6.4% of outstanding shares.
• Near-term risks include lowered full-year guidance tied to weakness in its electrophysiology and WATCHMAN portfolios, a product recall, and restructuring charges of up to $800 million despite expected long-term savings.

Boston Scientific (NYSE:BSX - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday.

Several other equities analysts have also issued reports on the stock. Barclays cut their price objective on shares of Boston Scientific from $96.00 to $89.00 and set an "overweight" rating on the stock in a report on Thursday, May 28th. Jefferies Financial Group lowered their target price on Boston Scientific from $100.00 to $67.00 and set a "buy" rating for the company in a report on Wednesday, June 24th. BTIG Research dropped their target price on Boston Scientific from $65.00 to $60.00 and set a "buy" rating on the stock in a research report on Wednesday. Citigroup cut their price target on Boston Scientific from $70.00 to $61.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Oppenheimer reduced their price target on Boston Scientific from $90.00 to $85.00 and set an "outperform" rating for the company in a research report on Monday, July 27th. Twenty-four research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Boston Scientific has an average rating of "Moderate Buy" and an average price target of $71.62.

Boston Scientific Stock Up 1.6%

NYSE:BSX opened at $46.75 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.90 and a quick ratio of 1.22. Boston Scientific has a 1-year low of $42.20 and a 1-year high of $109.50. The company has a 50-day moving average of $46.13 and a 200 day moving average of $62.26. The firm has a market cap of $69.48 billion, a PE ratio of 18.93, a price-to-earnings-growth ratio of 0.96 and a beta of 0.58.

Boston Scientific (NYSE:BSX - Get Free Report) last posted its earnings results on Wednesday, July 29th. The medical equipment provider reported $0.86 EPS for the quarter, beating analysts' consensus estimates of $0.83 by $0.03. Boston Scientific had a net margin of 17.50% and a return on equity of 19.36%. The business had revenue of $5.44 billion for the quarter, compared to the consensus estimate of $5.38 billion. During the same quarter last year, the firm posted $0.75 EPS. The company's revenue for the quarter was up 7.5% on a year-over-year basis. Boston Scientific has set its Q3 2026 guidance at 0.800-0.820 EPS and its FY 2026 guidance at 3.280-3.320 EPS. As a group, research analysts anticipate that Boston Scientific will post 3.3 EPS for the current fiscal year.

Boston Scientific declared that its board has approved a stock repurchase program on Monday, May 18th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the medical equipment provider to reacquire up to 6.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Activity at Boston Scientific

In other news, Director Edward J. Ludwig bought 3,580 shares of the stock in a transaction on Wednesday, May 20th. The stock was bought at an average cost of $56.68 per share, for a total transaction of $202,914.40. Following the completion of the purchase, the director directly owned 25,359 shares in the company, valued at approximately $1,437,348.12. The trade was a 16.44% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David C. Habiger purchased 2,250 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was purchased at an average cost of $55.92 per share, for a total transaction of $125,820.00. Following the completion of the acquisition, the director directly owned 13,878 shares of the company's stock, valued at approximately $776,057.76. The trade was a 19.35% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 9,800 shares of company stock valued at $554,012 over the last 90 days. Insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. FWL Investment Management LLC purchased a new stake in shares of Boston Scientific during the second quarter worth about $26,000. Swiss RE Ltd. acquired a new position in shares of Boston Scientific during the fourth quarter valued at about $26,000. Garton & Associates Financial Advisors LLC purchased a new position in shares of Boston Scientific in the 4th quarter valued at approximately $26,000. Sfam LLC acquired a new stake in Boston Scientific in the 4th quarter worth approximately $29,000. Finally, Eagle Bay Advisors LLC acquired a new stake in Boston Scientific in the 4th quarter worth approximately $30,000. 89.07% of the stock is owned by institutional investors and hedge funds.

Key Boston Scientific News

Here are the key news stories impacting Boston Scientific this week:

• Positive Sentiment: Boston Scientific reported second-quarter adjusted earnings of $0.86 per share and revenue of $5.44 billion, exceeding consensus estimates of $0.83 and $5.38 billion, respectively. Revenue increased 7.5% year over year, while management highlighted approximately 7% organic sales growth and a 15% increase in adjusted EPS. Boston Scientific Q2 earnings call highlights
• Positive Sentiment: Management’s multiyear restructuring plan is intended to improve efficiency and generate roughly $500 million in savings, supporting longer-term margins despite restructuring costs of up to $800 million. Reported workforce reductions are expected to affect operations in Ireland and Costa Rica. Boston Scientific restructuring cuts
• Positive Sentiment: Penumbra reported second-quarter revenue of $390.0 million, up 14.9% year over year, with thrombectomy revenue rising 12.5% and embolization and access revenue increasing 20.0%. The results provide supportive operating momentum for Boston Scientific’s pending acquisition of Penumbra, although PEN will not issue full-year guidance during the transaction. Penumbra second-quarter financial results
• Neutral Sentiment: Analyst sentiment remains broadly constructive but more cautious: UBS reaffirmed a Buy rating with a $74 target, while TD Cowen and Truist maintained Buy ratings despite lowering targets to $56 and $57. Argus reiterated a Hold rating, and BTIG reduced its expectations.
• Negative Sentiment: Boston Scientific lowered its full-year outlook because of headwinds affecting its electrophysiology and WATCHMAN portfolios. Analysts also cited a reset in expectations for these businesses, limiting the near-term upside from the earnings beat. Boston Scientific lowered full-year guidance
• Negative Sentiment: A recall involving the Rapid Refill Continuous Injection System adds a product and execution risk, while the restructuring will create near-term charges before expected savings are realized. Boston Scientific earnings, recall and restructuring

Boston Scientific Company Profile

Boston Scientific Corporation NYSE: BSX is a global medical device company that develops, manufactures and markets a broad portfolio of products used in less-invasive medical procedures. Founded in 1979 by John Abele and Peter Nicholas, the company is headquartered in Marlborough, Massachusetts, and focuses on technologies that enable physicians to treat a wide range of cardiovascular, digestive, urologic, pulmonary and chronic pain conditions without open surgery.

Boston Scientific's activities span product development, clinical research, regulatory affairs and commercial sales.

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