RBC on Boston Scientific (BSX) Long-Range Plan Released Earlier at Investor Day, 'we are encouraged

RBC Capital analyst Shagun Singh reiterated an Outperform rating and $58.00 price target on Boston Scientific (NYSE: BSX).

The analyst comments "BSX released its 2024-2026 long-range plan (LRP) at its Investor Day, which came in above expectations. This morning (9/20) BSX issued its 2024-26 LRP. It included organic sales CAGR of 8-10%, ahead of investor expectations of 7-9% going into the event. CEO Mike Mahoney noted that the growth goal over this LRP period is to move from “consistently outperforming” their peer group to “becoming the highest performing Large-cap MedTech over this three-year period.” Other 2024-2026 LRP guidance are as follows: (1) +150bps of operating margin expansion to ~28% in FY26 or roughly in line with consensus; (2) double-digit adjusted EPS growth; and (3) ~70% free cash flow conversion. The latter is an increasing area of focus that CFO Dan Brennan will talk more about during his remarks. Separately, BSX reiterated its 2023 guidance that includes 10-11% y/y organic revenue growth. Overall, we are encouraged by today's LRP update and are confident in its achievability, given multiple shots on goal across its portfolio and contribution from pulsed-field ablation (PFA). We reiterate our Outperform rating. "

For an analyst ratings summary and ratings history on Boston Scientific click here. For more ratings news on Boston Scientific click here.

Shares of Boston Scientific closed at $53.03 yesterday.

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