TD Cowen on Boston Scientific (BSX): 'Shipping Confirmed With Physician Contacts', 'We view the news as a big step forward'

TD Cowen analyst Joshua Jennings reiterated a Buy rating and $56.00 price target on Boston Scientific (NYSE: BSX).

The analyst comments "Yesterday, BSX said it has begun restoring shipping capabilities for the majority of its products at its major distribution centers. We have confirmed that these "capabilities" include actual product shipments, with one physician contact estimating that key products will be restocked by early next week. We view the news as a big step forward, which is not evident from today's muted stock reaction. After the close of the market yesterday, BSX posted an update regarding its cybersecurity incident that indicates it has begun restoring shipping capabilities for the majority of its products at its major distribution centers globally. The update has caveats – among them, that the company will need time to process its order backlog and that it is still working to restore shipping capabilities for non-majority products and non-major locations. In addition, we were unsure if its restoration of shipping "capabilities" meant that products are now actually going out the door. Today, we have confirmed with our physician contacts that BSX has indeed started to ship products to customers. One contact specifically cited initial shipments of VersaCross and Farawave, both of which several of the physicians we've contacted since last week have called out as items they had concerns about running out of. This physician believes that key products will be restocked by early next week. If true, BSX will likely have avoided severe fallout from the approximate two-week shipping disruption via a combination of hospital inventory, products on consignment and so-called trunk stock. The company had 22% of its finished goods inventory at customer locations at year-end 2025, and if a similar percentage is now at customer locations, this plus hospitals' own inventories should amount to a one- to two-week supply. We do not expect BSX to provide an assessment of the impact until it fully remediates all of its systems, so we will likely need to wait one or two more weeks to check our math. Still, we view yesterday's news as a big step forward for the company and think that today's stock reaction fails to reflect this progress."

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 $46.95 yesterday.

You May Also Be Interested In

• ADARx Pharmaceuticals files for proposed IPO
• Molson Coors Brewing (TAP) dropped from S&P 500
• USA Rare Earth (USAR) files for 126.5M share offering by selling stockholders