Bernstein SocGen Group lowered its price target for Boston Scientific to $112.00 from $130.00 while keeping an Outperform rating, a move that leaves the new target substantially above the company’s current trading level of $77.91 and the analyst consensus range of $90 to $130.
The analyst adjustment follows a notable miss in U.S. electrophysiology sales for the fourth quarter. Boston Scientific reported $606 million in U.S. EP revenue for Q4, which was effectively flat on a sequential basis but below the $643 million consensus figure. U.S. Watchman sales also undershot expectations by roughly 2%.
Investors reacted sharply to the sales shortfall, pushing Boston Scientific shares down about 18% on the news. Market participants flagged intensifying competition in the pulsed field ablation market as a primary concern. The downside in the stock came despite recent attempts by the company’s chief executive to allay investor worries.
Data from InvestingPro, cited in the company’s trading commentary, showed the stock had declined nearly 17% over the prior week and was trading close to its 52-week low. Technical indicators were noted as suggesting the shares may be entering oversold territory.
Some investors have raised questions about whether Boston Scientific possesses adequate organic growth levers to achieve its 10% to 11% organic growth guidance for 2026. The company’s recent acquisition of Penumbra for $14.5 billion also prompted debate among shareholders, with some viewing the transaction as potentially defensive in nature.
Despite those concerns, Boston Scientific’s recent operating history includes strong top-line expansion. The company posted a five-year revenue compound annual growth rate of 15% and delivered nearly 20% revenue growth in the last twelve months, facts that Bernstein SocGen continues to weigh positively.
In its analysis the broker emphasized that at a valuation multiple of 21.5 times, Boston Scientific still presents meaningful upside, citing growth opportunities in electrophysiology through new product launches, the release of new clinical data, and expansion into ambulatory surgery centers. The analyst also pointed to continued growth potential for the Watchman franchise and the company’s broader product portfolio.
Investor analytics referenced by the brokerage indicated Boston Scientific appears undervalued relative to its Fair Value, with a PEG ratio of 0.7 suggesting the shares are attractively priced relative to expected growth.
Boston Scientific’s reported fourth-quarter results showed total revenue of $5.29 billion, representing 12.7% organic year-over-year growth and slightly outpacing Oppenheimer’s and consensus estimates. Adjusted earnings per share were $0.80, ahead of Canaccord’s and consensus expectations. Reported GAAP earnings per share were $0.45, which fell short of analyst projections in the $0.51 to $0.53 range.
Following the earnings disclosure, several brokerages revised their price targets. RBC Capital reduced its target to $115 while maintaining an Outperform rating. Canaccord Genuity trimmed its target to $112 and kept a Buy rating. Truist Securities lowered its target to $95, characterized the recent share price pullback as overdone, and maintained a Buy rating. Evercore ISI retained its Outperform rating with a $96 target despite the EP sales miss.
Key points
- Bernstein SocGen cut its price target to $112 from $130 but kept an Outperform rating; shares trade near $77.91 and below the analyst consensus range of $90 to $130.
- U.S. electrophysiology sales missed estimates at $606 million for Q4 versus a $643 million consensus; U.S. Watchman sales were also about 2% below expectations.
- Market reaction has been severe, with an approximately 18% one-day decline and nearly 17% fall over the prior week, raising questions about competitive dynamics in PFA and near-term growth drivers.
Risks and uncertainties
- Competitive pressure in pulsed field ablation could weigh on EP revenue and investor sentiment, impacting the medical devices sector and equity markets for device makers.
- Uncertainty whether internal and acquired assets will deliver sufficient organic growth to meet 10% to 11% guidance for 2026 could affect valuation assumptions for Boston Scientific and peers in medtech.
- Integration and strategic clarity around the $14.5 billion Penumbra acquisition remain open questions for investors, with potential implications for capital allocation and portfolio performance.