Boston Scientific (BSX) JNJ Settlement Well Below Street Expectations, Removes Overhang - Piper Jaffray

Piper Jaffray analyst Brooks West commented on Boston Scientific (NYSE: BSX) after the company announced the settlement of the 2006 breach of merger agreement lawsuit brought by JNJ against Guidant for $600 million. West notes the settlement is well below the $1.0-1.5 billion the Street had recently been contemplating based on the January closing arguments of the trial, and significantly below the $7 billion+ in damages sought by JNJ.

"In our view, the settlement removes the primary overhang on BSX shares and dissipates concerns over other lingering IRS and mesh litigation (which will play out over the next 2-3+ years)," West said. "We also believe BSX will become more aggressive with acquisitions as management can now safely direct more cash flow to fund deals."

The firm maintained a Overweight rating and price target of $18.00

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 $14.84 yesterday.

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