Courtesy of Benzinga.
Canaccord Genuity said in a Tuesday note Boston Scientific Corporation (NYSE: BSX) enjoys the most robust pipeline in its long, storied history. The firm also said the company is set to further augment the proportion of sales derived from faster-growth markets, many of which sport tailwinds.
The firm initiated coverage of Boston Scientific with a Buy rating and a Street-high price target of $36 for the shares.
Analyst Jason Mills said the company is primed to deliver top- and bottom-line growth above its peer group over the next few years, given its compelling portfolio of differentiated products.
The products include Watchman, LAAC, S-ICD, Synergy DES and Lotus/Acurate TAVR, while the company also offers several differentiated technologies in its dominant Med-Surg business.
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The analyst thinks the stock will outperform large-cap med-tech peers over the next three years through three drivers, which fundamentally comprise his bullish thesis.
- Boston Scientific will deliver faster organic growth versus large-cap med-tech peer group. Canaccord Genuity estimates organic revenue growth of 7.8 percent through 2020 compared to 7 percent for large-cap peers.
- The company will deliver operating margin expansion, suggesting faster earnings per share growth versus peer group through 2018, at least.
- The firm expects the company to leverage a relatively unencumbered balance sheet in 2018-2021, allowing the company to consummate deals capable of augmenting growth and margins beyond organic means.
The firm said the company would spend about 90 percent of the $6.6 billion in free cash flow it estimates for the 2018-2020 timeframe, on M&A or returning cash to shareholders compared to 17 percent in the 2015-2017 timeframe.
Latest Ratings for BSX
Date | Firm | Action | From | To |
---|---|---|---|---|
Oct 2017 | Canaccord Genuity | Initiates Coverage On | Buy | |
May 2017 | Goldman Sachs | Initiates Coverage On | Neutral | |
Oct 2016 | Citigroup | Maintains | Buy |
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