Evercore ISI Starts Boston Scientific (BSX) at Buy

Evercore ISI initiates coverage on Boston Scientific (NYSE: BSX) with a Buy rating and a price target of $20.50.

Analyst Vijay Kumar commented, "BSX is undergoing a new product renaissance, highlighted by the S-ICD Emblem product within CRM, the WATCHMAN LAA device within structural heart and the SYNERGY bioresorbable stent system. We contend that these new products represent significant advancements over current technologies while addressing unmet clinical needs (e.g.: Watchman for preventing stroke in atrial fibrillation patients, S-ICD eliminates complications of transvenous leads and Synergy bioresorbable stent could eliminate late stent thrombosis), and face minimal (Synergy) to zero competition (S-ICD & Watchman). In total, we think these new products could present $600-800 MM of incremental revenues over the next 3 years, providing confidence in our mid-single digit top-line outlook."

The analyst also notes management has done an excellent job in turning around the company over the last few years, driving margin expansion in addition to the top-line turnaround.

Lastly, they see management's recent tuck-in acquisition of AMS (to add 7-10c to EPS) "as a sign of maturity, and shows that the company is confident in its current growth drivers and is looking at financially attractive tuck-in acquisitions (as compared to prior technology acquisitions - lower risk and high returns)."

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 $17.83 yesterday.

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