Leerink Swann Downgrades Boston Scientific (BSX) to Market Perform, Absence of Sales Growth
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Price: $51.83 +0.27%
Rating Summary:
33 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
33 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Leerink Swann downgraded Boston Scientific (NYSE: BSX) from Outperform to Market Perform with a price target of $6.00.
The firm comments, "With a strong free cash flow yield of ~11%, BSX shares could represent an attractive total return vehicle to long-term focused value investors. In the near-term, with ~50% of sales facing market declines and share losses, we think shares could trade in a tight range. As improving product mix and recent restructuring initiatives begin to bear fruit, BSX could potentially drive double-digit EPS growth in 2014 and beyond. We don’t expect BSX to return to top-line growth until 2014 at the earliest and see limited upside to shares from current levels pending clarity on: (1) New CEO Mike Mahoney’s growth strategy once he starts on Nov. 1; (2) BSX's capital allocation strategy; (3) Long-term sales growth drivers; and, (4) Timing and extent of potential MedTech market recovery."
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 $5.78 yesterday.
The firm comments, "With a strong free cash flow yield of ~11%, BSX shares could represent an attractive total return vehicle to long-term focused value investors. In the near-term, with ~50% of sales facing market declines and share losses, we think shares could trade in a tight range. As improving product mix and recent restructuring initiatives begin to bear fruit, BSX could potentially drive double-digit EPS growth in 2014 and beyond. We don’t expect BSX to return to top-line growth until 2014 at the earliest and see limited upside to shares from current levels pending clarity on: (1) New CEO Mike Mahoney’s growth strategy once he starts on Nov. 1; (2) BSX's capital allocation strategy; (3) Long-term sales growth drivers; and, (4) Timing and extent of potential MedTech market recovery."
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 $5.78 yesterday.
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