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Boston Scientific shares target raised on strong growth

EditorAhmed Abdulazez Abdulkadir
Published 04/25/2024, 07:10 AM

On Thursday, Truist Securities adjusted its outlook on Boston Scientific (NYSE:BSX), raising the price target from $79.00 to $86.00, while reiterating a Buy rating on the company's stock. The increased target follows Boston Scientific's recent financial performance, which showcased significant organic revenue and earnings per share (EPS) growth, surpassing investor expectations.

Boston Scientific's latest financial results revealed a 13.1% rise in organic revenue and a 20% increase in EPS. Additionally, the company provided an upbeat guidance update. The strong performance has been attributed in part to the early success of the US Farapulse results, which are contributing to what Truist Securities sees as one of the most robust beat and raise profiles in the large-cap medical technology sector.

The company's long-range plan (LRP) for revenue growth, initially seen as ambitious at 8-10%, now appears conservative. With 2024 projections indicating a 10-12% increase, Boston Scientific is on track for what appears to be accelerating double-digit revenue and EPS growth. This performance has solidified the company's standing as a preferred large-cap pick for Truist Securities.

Boston Scientific's positive outlook is further supported by a consistent introduction of new products, a robust pipeline, and attractive end markets. These factors are expected to contribute to the company's continued financial momentum and market position. The firm's updated price target reflects confidence in Boston Scientific's potential for sustained growth and profitability.

InvestingPro Insights

As Boston Scientific (NYSE:BSX) garners a favorable outlook from Truist Securities with an updated price target, real-time data from InvestingPro complements this perspective with a detailed financial snapshot. The company's market capitalization stands at a robust $107.2 billion, and while the P/E ratio is high at 58.01, the PEG ratio of 0.47 indicates potential for earnings growth relative to its price. Additionally, Boston Scientific has demonstrated a substantial 12.74% revenue growth over the last twelve months as of Q1 2024, reinforcing the optimism surrounding its financial performance.

InvestingPro Tips further enrich this analysis by highlighting that net income is expected to grow this year, with 10 analysts having revised their earnings upwards for the upcoming period. This aligns with the strong revenue and EPS growth noted by Truist Securities. It is also worth noting that Boston Scientific has a significant return over the last week, with a price total return of 8.14%, and over the last three months, the return has been an impressive 19.86%. These metrics suggest a positive trajectory for the company's stock.

For those looking to delve deeper into Boston Scientific's financial landscape, InvestingPro offers additional tips that can provide a more comprehensive understanding of the company's position. With a total of 20 InvestingPro Tips available, investors can gain insights into aspects such as the stock's trading multiples, volatility, and industry standing. To explore these tips and enhance your investment strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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