Nomura Securities Starts Boston Scientific (BSX) at Buy

Nomura Securities initiates coverage on Boston Scientific (NYSE: BSX) with a Buy rating and a price target of $22.00.

Analyst Ed Ridley-Day commented, "We initiate coverage of BSX, a leading diversified medical device manufacturer, with a Buy rating and USD 22 target price. We believe that BSX can deliver a strong FY16-18E EPS CAGR of 12.0% ahead of the US Medtech average (10.5%) and global Medtech average (11%) while trading at a P/EG of 1.4x vs the sector at 1.7x. We believe that the company can deliver strong 2016-18E sales CAGR of 5.8% supported by the uptake of differentiated new products including the Watchman stroke prevention device, we see strong growth potential and further share gains in urology and continence care following recent acquisitions and believe that recent underperformance in Cardiac Rhythm Management (CRM) may be set to end with new MRI-safe ICD/cardiac resynchronisation therapy (CRT) launches. The company is also executing on a significant efficiency programme, which we believe can support 240bp margin expansion by YE18E. With the stock trading at a 2017E P/E of 15.2x, BSX trades at a -12% discount to the US Medtech sector vs a five-year average premium of 1%. Our target price implies 12-month upside potential of 20%."

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 $17.89 yesterday.

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