Boston Scientific (BSX) has underappreciated growth drivers beyond its electrophysiology and Watchman franchises that should support continued high-single-digit organic growth, UBS said in a note Tuesday.
The firm pointed to coronary intravascular lithotripsy and renal denervation products expected in 2027 and 2028, representing a combined $2.5 billion served market, along with Empower leadless pacemaker launch in 2027 that could help the company gain share in a structurally higher-growth cardiac rhythm management market.
UBS said management's lowered growth outlook for electrophysiology and Watchman is already reflected in Street models, giving the company room to shift focus toward other high-growth areas.
The firm added that current share pricing implies sales declines through 2029, versus its own and consensus estimates for high-single-digit growth, suggesting the recent pullback is overdone.
UBS assumed coverage of Boston Scientific with a buy rating and $74 price target.
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