TD Cowen reiterated its Buy rating on Boston Scientific (NYSE: BSX) on Tuesday, maintaining a price target of $56.00 as the medical device maker’s shares trade near multi-year lows.
The firm’s stance contrasts with several peers who cut targets following Boston Scientific’s second-quarter results, which showed revenue of $5.44 billion, beating the $5.36 billion consensus estimate, and adjusted EPS of $0.86 versus expectations of $0.83. Despite the upside surprise, analysts reduced long-term growth forecasts, with 2027 revenue growth now projected at 4%, down from 8% previously.
Key product lines faced sharper downgrades. WATCHMAN growth estimates fell to -5% from 10%, while electrophysiology (EP) and urology outlooks were cut to 2% from 10%. Year-to-date, Boston Scientific shares have declined 48.6%, trading at $49.01, well below TD Cowen’s target and an InvestingPro fair value estimate of $64.33.
Other firms adjusted their assessments. Argus downgraded Boston Scientific to Hold, citing challenges in WATCHMAN, EP, and urology. Canaccord maintained a Buy rating but lowered its target to $66, while Mizuho and Raymond James reduced targets to $60 and $57, respectively, both citing procedural declines and guidance revisions. BTIG kept its Buy rating but trimmed its target to $60.
Analysts noted that the collective estimate reductions have created a more conservative outlook through 2027, though TD Cowen argued the valuation reset presents a favorable risk/reward trade-off. The firm also highlighted a PEG ratio of 0.42 as evidence of undervaluation. Twenty-two analysts have revised earnings downward for the upcoming period, reflecting ongoing caution despite the Q2 beat.
