Boston Scientific Corporation BSX 0.97% delivered a first-quarter miss in April and adjusted its 2019 guidance.
The stock holds several catalysts this year, including the FDA paclitaxel panel, a pipeline update at the company’s analyst meeting in June and the closing of the BTG acquisition, according to BMO Capital Markets.
The Analyst
Joanne Wuensch maintained an Outperform rating on Boston Scientific and raised the price target from $44 to $46.
The Thesis
Boston Scientific’s shares have been under pressure due to paclitaxel-related concerns and the company’s first-quarter miss, resulting in an attractive entry point, Wuensch said in a Thursday note. (See her track record here.)
Boston Scientific has a rich pipeline, the analyst said. The Exalt-D single-use duodenoscope is expected to be launched by the end of the year, while the company’s next-gen Watchman FLX will be available in Europe soon, she said, adding that reimbursement approval for the Watchman is expected in the third quarter in Japan.
Additional upcoming catalysts include the MRI labeling for Vercise DBS with Directional Leads, expected in the back half of this year; the global launch of the Lotus TAVR valve; and the enrollment of Acurate neo2 for the U.S. IDE and a launch in Europe in mid-2019, Wuensch said.
Boston Scientific is expected to provide an update during its June 26 analyst meeting.
The FDA’s Circulatory System Devices Panel is scheduled to meet June 19-20 for paclitaxel-related discussions and to make recommendations, the analyst said, adding that she expects this meeting to be a catalyst for the medical device maker.
The company stands out among its peers with high-single-digit organic revenue growth, operating leverage and double-digit EPS, according to BMO.
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