Summary: Truist Securities lowered its price target on Boston Scientific to $95.00 from $120.00 but kept a Buy rating, pointing to weaker-than-expected performance in the company’s electrophysiology business and an overreaction in the stock following a 17% decline. The firm sees Boston Scientific trading at a discount to higher-growth peers even as the company projects continued organic revenue and earnings expansion.
Truist’s move reduces the valuation hurdle for Boston Scientific amid concerns about its Electrophysiology (EP) unit. The company’s shares currently trade at a price-to-earnings ratio near 30, a level that reflects investor preference for growth-oriented medical technology companies. Truist analyst Richard Newitter characterized the recent 17% drawdown in the stock as "overdone" in his research note.
The analyst singled out underperformance in the EP segment as the chief reason for applying a lower multiple and a reduced price target. As a result, Truist said Boston Scientific is becoming more dependent on the Watchman device and other non-EP businesses to drive future growth.
Despite the revised target, Truist argued the shares are now trading at a discount relative to faster-growing peers and do not fully reflect potential upside. The firm highlighted the company’s internal projections for organic revenue growth above 10% and earnings-per-share growth of roughly 13% as reasons to maintain a Buy stance.
Truist also flagged the potential for investors to reposition ahead of a near-term catalyst: the CHAMPION trial results scheduled for March 28 at the American College of Cardiology conference, which could materially affect sentiment around the Watchman device.
Recent quarterly results add context to analysts’ caution. Boston Scientific reported fourth-quarter 2025 adjusted earnings per share of $0.80, exceeding a $0.78 consensus. Still, the stock fell, a move attributed in the note to broader market dynamics or company-specific issues. Within the quarter, the EP division, and specifically the Farapulse pulsed-field-ablation (PFA) technology, underperformed expectations.
That shortfall prompted other research shops to trim their targets as well. Stifel moved its price target down to $110 from $125 while keeping a Buy rating, and BTIG cut its target to $110 from $132, pointing to weaknesses in the PFA and Watchman left-atrial appendage closure franchises that missed fourth-quarter sales expectations.
Measured misses were material. The Electrophysiology segment fell short of consensus by $33 million, and Watchman revenue landed $4 million below expectations. Management’s 2026 outlook also disappointed some investors: Boston Scientific outlined adjusted EPS guidance of $3.43 to $3.49, which sits modestly below analysts’ average estimate of $3.47 according to LSEG data.
These developments contributed to heightened volatility, including a roughly 10% drop in the shares during premarket trading. Nonetheless, analysts have preserved Buy ratings across the board, signaling continued confidence in the company’s longer-term prospects despite near-term headwinds.
Contextual note: Observations in this report rely on the statements and figures provided by analysts and company disclosures noted above. Where specific drivers or timing were not detailed by those sources, this article reflects that limitation rather than adding unverified interpretation.