Boston Scientific (BSX) shares fell Wednesday after Chief Executive Mike Mahoney's comments about flat sequential US revenue for the Watchman device in Q2 and potentially in Q3, but the company's 2026 guidance remains intact, RBC Capital Markets said in a note.
The investment firm said the stroke prevention device's performance reflects continued decline in standalone procedures, although this was partially offset by an increase in concomitant procedures.
RBC highlighted that Boston Scientific's organic revenue growth guidance of 5% to 7% year on year in Q2, and 6.5% to 8% for 2026, including the flat outlook for Watchman, is still in place. Management also expects the Watchman device to "return to hypergrowth" backed by factors like a label change submitted to the US Food and Drug Administration, as well as patient education.
The investment firm said it continues to believe in the long-term growth contribution from Watchman based on checks despite the near-term trends.
RBC Capital Markets has an outperform rating on Boston Scientific and a $100 price target.
Shares of Boston Scientific were down 2.9% in Thursday trading.
Price: $49.02, Change: $-1.45, Percent Change: -2.86%