Investing.com -- Raymond James lowered its rating on Boston Scientific to Outperform from Strong Buy in a note to clients on Monday, citing increased variability in the company’s key growth drivers despite maintaining a positive long-term view.

The price target was reduced to $88 from $97.

“Our overarching view of Boston Scientific (BSX) as one of the highest quality, and fastest growing, companies in large cap Med Tech has not changed,” analyst Jayson Bedford wrote.

However, he added that the firm is “lowering our estimates… to reflect slower trends in BSX’s key growth areas.”

The downgrade follows softer-than-expected momentum in U.S. electrophysiology and Watchman, two businesses that “represented 26% of sales in 2025, and accounted for over half of BSX’s y/y growth,” according to Raymond James.

The firm now expects these units to grow 17% and 16% in 2026 and 2027, down from prior assumptions of 18% and 20%.

Watchman remains a focal point. Raymond James called the CHAMPION-AF trial results a positive and said the outcome “takes a worst case ‘miss’ scenario off the table,” paving the way for label expansion in 2027.

However, it warned that CLOSURE data published in the NEJM is “still generating (negative) attention” and could “muddy the water” for growth.

Electrophysiology trends were also weaker than expected, with fourth-quarter deceleration and ongoing share erosion. The firm now models EP growth of 15% and 14% over the next two years.

Despite trimming 2026 and 2027 revenue by roughly 0.5% and 1.5%, Raymond James argued the valuation “still skews favorable,” highlighting that BSX trades at 18 times projected 2027 earnings versus peers at 21 times.