Key Takeaways
- Raymond James downgraded Boston Scientific from Strong Buy to Outperform, lowering the price target from $97 to $88.
- Decelerating growth in U.S. electrophysiology and Watchman products—accounting for over half of BSX’s year-over-year revenue expansion—triggered the rating change.
- Shares dropped to a 52-week low, declining approximately 30% from year-ago levels.
- FDA approval for the Asurys fluid management system and positive CHAMPION-AF trial results provided some upside news.
- Several firms including Evercore ISI, Bernstein, and Stifel retained bullish ratings despite near-term headwinds.
Boston Scientific experienced a challenging trading session Monday, with shares plummeting more than 8% to reach a 52-week low as analysts grew increasingly skeptical about the medical device company’s short-term growth prospects.
Boston Scientific Corporation, BSX
The steep decline followed an analyst note from Raymond James’ Jayson Bedford, who lowered his rating on BSX from Strong Buy to Outperform. Bedford simultaneously reduced his price target from $97 down to $88. Despite the downgrade, the firm emphasized it 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 expectations required recalibration.
The primary concern centers on momentum loss in two of BSX’s most dynamic business segments. The company’s U.S. electrophysiology division and Watchman device collectively represented 26% of total 2025 revenue and contributed more than half of Boston Scientific’s annual revenue growth. Raymond James now projects these segments will expand at rates of 17% and 16% over the coming two years—a notable reduction from previous forecasts of 18% and 20%.
Regarding the electrophysiology business, fourth-quarter performance showed signs of deceleration, and the firm has observed continued market share losses. Raymond James currently models EP growth rates of 15% for 2026 and 14% for 2027.
The Watchman outlook presents a more nuanced scenario. While the CHAMPION-AF trial delivered encouraging results—which Raymond James noted “takes a worst case ‘miss’ scenario off the table” and positions the device for possible label expansion in 2027—separate data from the CLOSURE trial published in the New England Journal of Medicine has attracted negative commentary and may dampen growth expectations for the product.
Shares Trading at 52-Week Lows
Trading around $65.26, BSX has fallen to its weakest level in twelve months. The stock has shed roughly 30% over the trailing year, leaving the company with a market capitalization of approximately $102.8 billion.
Despite the selling pressure, InvestingPro analysis suggests the shares could be undervalued. BSX has delivered close to 20% revenue growth and currently trades at a PEG ratio of 0.64. Raymond James also noted that BSX is valued at roughly 18 times projected 2027 earnings—a discount compared to the peer group average of 21 times.
Bright Spots Amid the Selloff
Not all developments are negative. The FDA recently granted 510(k) clearance for BSX’s Asurys Fluid Management System, intended for endoscopic urologic procedures. Additionally, the CHAMPION-AF trial demonstrated that the Watchman device matched NOAC anticoagulants on efficacy while offering superior safety outcomes.
Stifel maintained its Buy rating on BSX following these trial results, keeping a $90 price target. Evercore ISI reaffirmed its Outperform stance, pointing to the company’s ability to sustain a 9% revenue compound annual growth rate through 2028. Bernstein also maintained its Outperform rating, albeit with a $112 price target that appears ambitious given current trading levels.
Raymond James reduced its 2026 and 2027 revenue projections by approximately 0.5% and 1.5% respectively, while continuing to endorse the company’s long-term growth trajectory.
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