TLDR
- Raymond James reduced BSX from Strong Buy to Outperform, lowering the price target from $97 to $88.
- Decelerating U.S. electrophysiology and Watchman device sales — accounting for over half of BSX’s annual growth — drove the analyst’s concern.
- Shares touched a new 52-week low, declining approximately 30% year-over-year.
- Positive developments include FDA clearance for the Asurys fluid management system and successful CHAMPION-AF trial results.
- Multiple analysts including Evercore ISI, Bernstein, and Stifel maintained bullish ratings despite the selloff.
Boston Scientific experienced a challenging trading session on Monday. Shares plunged more than 8%, touching a 52-week low as analysts expressed growing caution regarding the medical device manufacturer’s short-term growth trajectory.
Boston Scientific Corporation, BSX
The sharp decline followed a rating adjustment from Raymond James analyst Jayson Bedford, who moved BSX from Strong Buy to Outperform. Bedford simultaneously reduced his price target from $97 to $88. The firm emphasized its continued confidence in the company’s long-term prospects, 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 concern centers on weakening momentum in two of BSX’s top-performing divisions. The U.S. electrophysiology segment and Watchman device collectively represented 26% of total revenue in 2025 and contributed over half of the company’s year-over-year sales expansion. Raymond James now projects these units will expand at 17% and 16% respectively over the coming two years — a reduction from previous forecasts of 18% and 20%.
Regarding electrophysiology, fourth-quarter performance showed deceleration, and the firm has identified continued market share losses. Raymond James currently models EP expansion at 15% and 14% for 2026 and 2027 respectively.
The Watchman outlook presents a more nuanced scenario. While CHAMPION-AF trial data proved encouraging — Raymond James noted the results “takes a worst case ‘miss’ scenario off the table” and creates opportunity for label expansion in 2027 — data from the CLOSURE trial published in the New England Journal of Medicine continues to generate negative sentiment and may dampen near-term growth prospects for the device.
Stock Near 52-Week Low
Trading at approximately $65.26, BSX is hovering near its lowest valuation in a year. Shares have declined roughly 30% over the trailing 12 months, leaving the company with a market capitalization of approximately $102.8 billion.
Despite the selling pressure, InvestingPro data suggests the stock may be trading below fair value. BSX has delivered nearly 20% revenue expansion and maintains a PEG ratio of 0.64. Raymond James also highlighted that BSX trades at roughly 18 times projected 2027 earnings — a discount compared to the peer group average of 21 times.
Positive Developments in the Pipeline
Not all indicators are negative. The FDA issued 510(k) clearance for BSX’s Asurys Fluid Management System, designed for endoscopic urologic procedures. Additionally, the CHAMPION-AF trial demonstrated that the Watchman device matched NOAC blood thinners on efficacy while showing safety benefits.
Stifel maintained its Buy rating on BSX following these developments, establishing a $90 price target. Evercore ISI reaffirmed its Outperform stance, pointing to the company’s capacity to sustain a 9% revenue compound annual growth rate through 2028. Bernstein also retained its Outperform rating, albeit with a $112 price target that appears optimistic given current trading levels.
Raymond James adjusted 2026 and 2027 revenue projections downward by approximately 0.5% and 1.5% respectively, while preserving the view that BSX’s long-term fundamentals remain solid.
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