The most recent challenge for BSX was the announcement that the company was shutting down its Lotus Edge heart valve program. The stock dropped 8.3% the day of the announcement. These challenges have resulted in sub-par performance of the stock. At the time of writing, Boston Scientific is down 22.87% YTD, while the S&P is up 17.71% and the S&P 500 Healthcare Sector is up 11.64%.
The pandemic has skewed the growth numbers and shutting down the LOTUS program has lowered the company’s growth prospects, but the story driving growth in EPS and free cash flow still remains intact. Management remains confidence that the business can grow the top-line 6 to 8% organically and expand operating margins 50 to 100bps y/y for the next couple of years (using 2019 as a base year). Based on the assumption that 2022 is a completely normalized year, it is not unreasonable for BSX to do $1.97 in EPS in 2021. A 6% to 8% topline growth rate puts BSX at the top of its peer growth in terms of growth profile which on average trade at ~23x earnings.
Applying a 23x multiple to $1.97 in EPS gets you a $45.30 stock in a year representing a 29.7% return from current trading levels. Your downside is probably around $33, down ~5%.
Successful Trading is the art of minimizing long term risk and maximizing capital allocation.
Recent BSX News
- Boston Scientific Closes Acquisition of Silk Road Medical, Inc. • PR Newswire (US) • 09/17/2024 12:31:00 PM
- Boston Scientific Receives FDA Approval for Expanded Indication of INGEVITY™+ Pacing Leads to Include Conduction System Pacing of the Left Bundle Branch Area • PR Newswire (US) • 09/17/2024 11:00:00 AM
- Boston Scientific Obtains CE Mark for ACURATE Prime™ Aortic Valve System • PR Newswire (US) • 08/27/2024 10:57:00 AM
- Boston Scientific to Participate in Wells Fargo's 2024 Healthcare Conference • PR Newswire (US) • 08/13/2024 12:00:00 PM
- Boston Scientific Elects David Habiger to Board of Directors • PR Newswire (US) • 07/30/2024 08:05:00 PM
- Boston Scientific Announces Results for Second Quarter 2024 • PR Newswire (US) • 07/24/2024 10:30:00 AM
- Boston Scientific Announces Conference Call Discussing Second Quarter 2024 Results • PR Newswire (US) • 07/01/2024 12:00:00 PM
- Rowley Law PLLC is Investigating Proposed Acquisition of Silk Road Medical, Inc. • PR Newswire (US) • 06/18/2024 05:23:00 PM
- Boston Scientific Announces Agreement to Acquire Silk Road Medical, Inc. • PR Newswire (US) • 06/18/2024 11:00:00 AM
- Silk Road Medical Announces Definitive Agreement to be Acquired by Boston Scientific • GlobeNewswire Inc. • 06/18/2024 11:00:00 AM
- MODULAR ATP Study of the mCRM™ System Meets Primary Safety and Efficacy Endpoints • PR Newswire (US) • 05/18/2024 03:03:00 PM
- Boston Scientific Elects Dr. Cheryl Pegus to Board of Directors • PR Newswire (US) • 05/08/2024 08:00:00 PM
- U.S. Futures Display Mixed Results Amid Earnings, WTI and Brent Crude Prices Dip in June Futures Trading • IH Market News • 04/24/2024 11:31:20 AM
- Boston Scientific Announces Results for First Quarter 2024 • PR Newswire (US) • 04/24/2024 10:30:00 AM
- Boston Scientific Initiates NAVIGATE-PF Study of the FARAWAVE™ Nav Pulsed Field Ablation Catheter and FARAVIEW™ Software Module • PR Newswire (US) • 04/08/2024 04:00:00 AM
- Boston Scientific Announces Conference Call Discussing First Quarter 2024 Results • PR Newswire (US) • 04/01/2024 12:00:00 PM
- Boston Scientific Receives FDA Approval for the AGENT™ Drug-Coated Balloon • PR Newswire (US) • 03/01/2024 11:55:00 AM
- Boston Scientific Announces Completion of €2.0 Billion Offering of Senior Notes • PR Newswire (US) • 02/27/2024 09:15:00 PM
- Boston Scientific Announces Pricing of €2.0 Billion of Senior Notes • PR Newswire (US) • 02/23/2024 02:27:00 AM
- Boston Scientific to Participate in TD Cowen's 44th Annual Health Care Conference • PR Newswire (US) • 02/05/2024 01:00:00 PM
- Boston Scientific Announces Results for Fourth Quarter and Full Year 2023 • PR Newswire (US) • 01/31/2024 11:30:00 AM
- U.S. Futures Waver Ahead of Fed Decision Amid Mixed Corporate Earnings; Oil Prices Slide • IH Market News • 01/31/2024 11:29:30 AM
- Boston Scientific Receives FDA Approval for FARAPULSE™ Pulsed Field Ablation System • PR Newswire (US) • 01/31/2024 11:25:00 AM
- Rowley Law PLLC is Investigating Proposed Acquisition of Axonics, Inc. • PR Newswire (US) • 01/08/2024 09:55:00 PM
- Axonics Shares Climb 20% After Acquisition by Boston Scientific • Dow Jones News • 01/08/2024 04:36:00 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM