TLDR
- Raymond James reduced BSX rating from Strong Buy to Outperform, lowering the price target from $97 to $88.
- Slowdown in U.S. electrophysiology and Watchman device sales — responsible for over half of BSX’s annual growth — triggered the downgrade.
- Shares touched a new 52-week low, declining approximately 30% from last year’s levels.
- BSX received FDA 510(k) clearance for its Asurys fluid management system, while CHAMPION-AF trial results showed positive outcomes.
- Multiple firms including Evercore ISI and Bernstein kept Outperform ratings, with Stifel maintaining a Buy stance at $90.
Shares of Boston Scientific took a significant hit on Monday, plummeting over 8% to reach a fresh 52-week low as analysts expressed growing caution about the medical device company’s short-term revenue trajectory.
Boston Scientific Corporation, BSX
The sharp decline followed a downgrade from Raymond James analyst Jayson Bedford, who moved his rating from Strong Buy to Outperform while reducing the price objective from $97 to $88. Despite the adjustment, the firm emphasized its continued confidence in BSX’s long-term prospects, describing it as “one of the highest quality, and fastest growing, companies in large cap Med Tech.” However, near-term projections required recalibration.
The primary concern centers on weakening momentum in two critical growth drivers. BSX’s U.S. electrophysiology division and Watchman device collectively represented 26% of 2025 total revenue and accounted for more than half of the company’s year-over-year sales expansion. Raymond James has revised downward its growth forecasts for these segments to 17% and 16% over the coming two years — compared to previous estimates of 18% and 20%.
Regarding electrophysiology, fourth-quarter performance showed signs of deceleration, with the firm observing continued market share losses. Current projections anticipate EP growth rates of 15% in 2026 and 14% in 2027.
The Watchman outlook presents a more nuanced situation. While CHAMPION-AF trial data proved encouraging — with Raymond James noting the results “takes a worst case ‘miss’ scenario off the table” and potentially enabling label expansion by 2027 — separate findings from the CLOSURE trial published in the New England Journal of Medicine have attracted negative scrutiny that may constrain device growth prospects.
Shares Trading Near Annual Bottom
Currently priced around $65.26, BSX is hovering near its weakest point in twelve months. The stock has retreated roughly 30% over the past year, bringing the company’s market capitalization to approximately $102.8 billion.
Despite the selling pressure, InvestingPro analysis suggests potential undervaluation. BSX has delivered close to 20% revenue expansion and maintains a PEG ratio of 0.64. Raymond James additionally noted that BSX trades at approximately 18 times forward 2027 earnings — representing a discount compared to the peer group average of 21 times.
Favorable Developments on the Horizon
Not all indicators point downward. BSX recently secured FDA 510(k) clearance for its Asurys Fluid Management System, intended for endoscopic urologic procedures. Additionally, CHAMPION-AF trial data demonstrated that the Watchman device equaled NOAC anticoagulants in effectiveness while offering superior safety profiles.
Stifel maintained its Buy recommendation on BSX following these developments, setting a $90 price objective. Evercore ISI reaffirmed its Outperform stance, highlighting the company’s capability to sustain a 9% revenue compound annual growth rate through 2028. Bernstein similarly retained its Outperform rating, albeit with a $112 price target that appears ambitious relative to current trading levels.
Raymond James decreased its 2026 and 2027 revenue projections by approximately 0.5% and 1.5% respectively, while affirming that BSX’s long-term investment thesis remains fundamentally sound.
