-- Boston Scientific (BSX) posted Q1 sales and earnings per share beats alongside a "prudent" guidance cut, with Q2 expected to be the trough quarter, RBC Capital Markets said in a note Wednesday.
The analysts said management lowered 2026 organic growth outlook to 6.5% to 8% due to "unanticipated headwinds" and "changing business patterns," though many investors already expected a reset, including those who believed the company could make the numbers to reset the base.
The analysts called Q1 a "clearing event," with Boston Scientific reporting Electrophysiology growing 21.7% year-over-year on an organic basis versus 18.5% consensus, while Watchman grew 18.8% versus 21.5% consensus, broadly in line with expectations.
"Looking ahead, we view Q2 as a trough quarter (guided 5% to 7%) with improving growth thereafter aided by new products, improvement in base businesses, and Watchman growth in low double digits. We would be buyers at current valuations," the analysts said.
RBC reiterated its outperform rating on Boston Scientific and adjusted its price target to $100 from $105.
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