Wolfe Research cuts Boston Scientific rating as key growth drivers falter

Investing.com -- Wolfe Research downgraded Boston Scientific to Peer Perform in a note on Friday, declaring the end of a multiyear bullish thesis on the medical device company after its two key growth engines (pulsed field ablation and the Watchman left atrial appendage closure device) stalled sharply in the first half of 2026.

Analyst Mike Polark, who championed the stock for four years, said bluntly that "the call as we pitched it for 4 years has died.”

His revised model points to 7% organic growth in 2027, $3.65 in earnings per share, and a stock price in the low $50s.

On PFA, Polark cited intensifying competition from Abbott, which he said is instigating a price and bundling war ahead of Boston Scientific's next meaningful catalysts, which are not expected until mid-2027 to 2028.

On Watchman, a series of clinical trial readouts, combined with a cut to the Watchman implanter fee and capacity constraints in catheterization and electrophysiology labs, have raised the prospect of outright volume declines.

“For years the BSX napkin model we often wrote up was something to the effect of “80% of revenue grows 5%-7% while the other 20%, PFA and Watchman, grows 20%-30%. Cross multiply and BSX overall grows revenue 10% organically.” And now? It’s like…100% of revenue grows 5%-7%,” the analyst wrote.

Capital allocation also weighed on the downgrade, with Polark flagging the Axonics acquisition as a "disaster" and expressing concern about execution risk across recent deals.

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