TLDR
- Raymond James lowered BSX from Strong Buy to Outperform, reducing the price target from $97 to $88.
- Decelerating momentum in U.S. electrophysiology and Watchman products — responsible for more than 50% of BSX’s annual growth — sparked analyst concerns.
- Shares touched a new 52-week low, declining approximately 30% over the trailing 12-month period.
- Positive developments include FDA 510(k) clearance for the Asurys fluid management system and successful CHAMPION-AF trial results.
- Multiple firms including Evercore ISI and Bernstein kept Outperform ratings, while Stifel maintained its Buy stance with a $90 target.
Boston Scientific faced significant selling pressure on Monday, with shares tumbling over 8% to reach a 52-week low as investor sentiment soured on the medical device company’s near-term growth prospects.
Boston Scientific Corporation, BSX
The sharp decline followed a rating downgrade from Raymond James analyst Jayson Bedford, who moved BSX from Strong Buy to Outperform while simultaneously slashing the price objective from $97 to $88. Despite the adjustment, the firm emphasized it remains bullish on 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 projections required recalibration.
The primary catalyst behind the downgrade centers on weakening performance in two of BSX’s most dynamic business segments. The company’s U.S. electrophysiology division and Watchman device collectively represented 26% of total revenue in 2025 while contributing over half of BSX’s year-over-year top-line expansion. Raymond James now forecasts these segments will expand at rates of 17% and 16% over the coming two years — a reduction from previous projections of 18% and 20%.
Regarding the electrophysiology business, fourth-quarter performance showed signs of deceleration, with the firm observing continued market share losses. Raymond James currently models EP growth rates of 15% and 14% for 2026 and 2027 respectively.
The Watchman outlook presents a more nuanced scenario. While CHAMPION-AF trial data proved encouraging — with Raymond James noting the results “takes a worst case ‘miss’ scenario off the table” and positions the product for potential label expansion in 2027 — recently published CLOSURE trial findings in the New England Journal of Medicine continue to generate skepticism that may dampen the device’s growth trajectory.
Stock Near 52-Week Low
Trading around $65.26, BSX shares are hovering near their lowest point in a year. The stock has shed roughly 30% over the past 12 months, bringing the company’s market capitalization to approximately $102.8 billion.
Despite mounting pressure, InvestingPro analysis suggests the stock could be trading below its intrinsic value. BSX has delivered close to 20% revenue expansion and maintains a PEG ratio of 0.64. Raymond James also highlighted that BSX currently trades at approximately 18 times anticipated 2027 earnings — representing a discount compared to the peer group average of 21 times.
Positive Developments in the Pipeline
The outlook isn’t entirely negative. The FDA recently granted 510(k) clearance for BSX’s Asurys Fluid Management System, intended for endoscopic urologic applications. Additionally, the CHAMPION-AF trial demonstrated the Watchman device delivered comparable efficacy to NOAC anticoagulants while offering improved 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 ability to sustain a 9% revenue compound annual growth rate through 2028. Bernstein likewise preserved its Outperform rating, albeit with a $112 price target that appears optimistic given current trading levels.
Raymond James reduced its 2026 and 2027 revenue forecasts by approximately 0.5% and 1.5% respectively, while continuing to support the thesis that BSX’s long-term fundamentals remain strong.
