Healthcare Business

Why Boston Scientific Could Retest All-Time Highs

Boston Scientific Corp. (NYSE: BSX) announced earlier this morning that it will be in position to submit the final Lotus Edge Premarket Approval (PMA) next week, with plans to be back in Europe in the first quarter of 2019, and enter the U.S. market in mid-2019. One analyst thinks this plan is especially ambitious and as a result rewarded the company with one of the highest price targets on Wall Street.

Canaccord Genuity issued a Buy rating with a $39 price target, implying an upside of 17.4% from the most recent closing price of $33.22.

Overall the firm believes that the announcement was the first definitive communication from the firm on this topic in the past several months, and Canaccord Genuity doesn’t believe Boston Scientific would have stated these expectations if it didn’t have full confidence in re-entering the European market and making its first foray into the U.S. market.

For some quick background: Lotus Edge is a transcatheter aortic valve replacement (TAVR) system. It is intended to be implanted in patients with severe aortic stenosis who are poor candidates for an open heart surgical procedure.

The brokerage firm went on to say:

We think today’s announcement, and the pending market re-entry of Lotus, could portend meaningful upside to our, as well as consensus expectations for total revenue and pro forma EPS targets, especially in 2020 and beyond, as we think the opportunity had largely been taken out of forward estimates. We think today’s positive update provides further upside to a Structural Heart portfolio that continues to deliver ahead of expectations, and where we think 2018 guidance still appears conservative. Today’s announcement further augmented our long-term bullish outlook on the prospects for BSX’s Structural Heart portfolio, driven by Watchman, Lotus/Acurate neo in TAVR, and the TMVR2 space, in which we expect BSX to become a meaningful player likely via M&A over the next few years.

Shares of Boston Scientific were last seen up about 3% at $34.17, with a consensus analyst price target of $37.95 and a 52-week trading range of $24.54 to $37.30.