TLDR
- Raymond James downgraded BSX from Strong Buy to Outperform and cut its price target from $97 to $88.
- Weaker-than-expected trends in U.S. electrophysiology and Watchman — which made up over half of BSX’s year-over-year growth — are at the center of the concern.
- The stock hit a fresh 52-week low, down roughly 30% over the past year.
- On the positive side, FDA cleared BSX’s Asurys fluid management system, and the CHAMPION-AF trial met its primary endpoints.
- Evercore ISI and Bernstein maintained Outperform ratings, while Stifel reiterated Buy with a $90 price target.
Boston Scientific has had a rough Monday. The stock dropped more than 8%, hitting a 52-week low as Wall Street turned more cautious on the medical device maker’s near-term growth story.
Boston Scientific Corporation, BSX
The selloff came after Raymond James analyst Jayson Bedford downgraded BSX from Strong Buy to Outperform. He also cut the price target from $97 to $88. The firm was clear it hasn’t lost faith in the company’s long-term story, calling BSX “one of the highest quality, and fastest growing, companies in large cap Med Tech.” But the numbers needed adjusting.
The core issue is two of BSX’s fastest-growing businesses are losing momentum. U.S. electrophysiology and the Watchman device together made up 26% of total sales in 2025 and drove more than half of BSX’s year-over-year revenue growth. Raymond James now expects those units to grow at 17% and 16% over the next two years — down from prior estimates of 18% and 20%.
On the EP side, fourth-quarter trends decelerated and the firm is seeing ongoing share erosion. Raymond James now models EP growth at 15% and 14% for 2026 and 2027 respectively.
Watchman is a more mixed picture. The CHAMPION-AF trial results were positive — Raymond James said the outcome “takes a worst case ‘miss’ scenario off the table” and sets up a potential label expansion in 2027. But data from the CLOSURE trial published in the New England Journal of Medicine is still drawing negative attention and could cloud the growth picture for the device.
Stock Near 52-Week Low
At around $65.26, BSX is sitting close to its lowest level in a year. The stock is down roughly 30% over the past 12 months, giving the company a market cap of about $102.8 billion.
Despite the pressure, InvestingPro data shows the stock may be undervalued. BSX has posted nearly 20% revenue growth and carries a PEG ratio of 0.64. Raymond James also pointed out that BSX trades at about 18 times projected 2027 earnings — a discount to the peer group average of 21 times.
Positive Developments in the Pipeline
Not everything is pointing down. The FDA granted 510(k) clearance for BSX’s Asurys Fluid Management System, which is designed for use in endoscopic urologic procedures. The CHAMPION-AF trial also showed the Watchman device matched NOAC blood thinners on efficacy with safety advantages.
Stifel kept its Buy rating on BSX following those results, with a $90 price target. Evercore ISI reiterated Outperform, citing the company’s potential to maintain a 9% revenue compound annual growth rate through 2028. Bernstein also held its Outperform rating, though with a $112 price target that looks lofty at current levels.
Raymond James trimmed 2026 and 2027 revenue estimates by roughly 0.5% and 1.5% respectively, while maintaining the view that the long-term setup for BSX remains intact.
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