On Thursday, Baird raised the price target on shares of Boston Scientific (NYSE:BSX) to $84.00, up from the previous target of $79.00, while reiterating an Outperform rating on the stock. The adjustment follows Boston Scientific's first-quarter earnings report, which showcased significant revenue and adjusted earnings per share (EPS) growth that outpaced previous years.
Boston Scientific reported a 5% revenue beat and a 10% adjusted EPS beat for the first quarter of 2024. This marks the fifth consecutive quarter where the company achieved double-digit top-line growth, with a 13% organic year-over-year increase, and a 15% growth in EPS, which is a 21% increase compared to the previous year.
The analyst noted that the U.S. launch of the PFA (Pulmonary Fibrosis Association) in the first quarter largely contributed to the company's performance. However, growth was not limited to this product alone; the broader portfolio continued to perform well, with MedSurg and Cardiology divisions growing above the long-range plan, at 11% and 18%, respectively.
Boston Scientific's strong quarterly performance has led to an upward revision of the company's revenue and EPS guidance by management. The analyst from Baird believes that there is still ''upside potential'', which could reinforce Boston Scientific's position as a leading company in the diversified large-cap medical technology sector.
InvestingPro Insights
In light of Baird's recent price target increase for Boston Scientific (NYSE:BSX), investors might find additional context from InvestingPro data and tips useful. The company's market capitalization stands at a robust $107.2 billion, reflecting its significant presence in the healthcare equipment and supplies industry. Despite a high P/E ratio of 58.01, the adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly higher at 58.49, which might suggest a premium for the company’s earnings potential. Furthermore, the PEG ratio for the same period is 0.47, indicating that the company's earnings growth could be undervalued relative to its P/E ratio—a positive sign for potential investors.
InvestingPro Tips highlight that Boston Scientific's net income is expected to grow this year, which aligns with the positive earnings report and the analyst's upbeat outlook. Moreover, the fact that 10 analysts have revised their earnings upwards for the upcoming period reinforces the optimistic sentiment around the company's financial prospects. For those interested in exploring deeper analysis and more tips, InvestingPro offers additional insights on Boston Scientific, including metrics like the stock's low price volatility and its position as a prominent player in its industry. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where even more InvestingPro Tips are available for Boston Scientific and other stocks.
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