Mizuho Securities raised the price target for Boston Scientific Corporation BSX, saying the cardiology segment is poised to deliver double-digit growth.
Citing the virtual NDR group meeting, Mizuho Securities Managing Director Anthony Petrone said high-level feedback suggests that the cardiology segment is poised to maintain a “healthy” double-digit top-line growth profile for the foreseeable future supported by rapid Farapulse adoption, Watchman FLX upside from combo pulsed field ablation concomitant surgery with left atrial appendage closure (PFA and LAAC) surgery, and core CRM renaissance supported by Emblem S-ICD adoption.
Mizuho wrote, “Feedback supports our view that U.S. Farapulse contribution can approach our $400 million bull case scenario this year while combo PFA + LAAC surgery can drive Watchman FLX growth back over +20% heading into next year.”
With a Buy rating, Mizuho increased the price target from $85 to $90, and cited that the scenarios from PFA and LAAC combo surgery volumes support a higher $115 bull case price target.
The analyst said the Farapulse launch in the U.S. mirrored its European rollout. Faster ablation times increased capacity by about 36%, leading to more scheduled cases.
The company anticipates that results from their persistent atrial fibrillation (AF) trials will boost awareness and treatment, further expanding the PFA market.
Boston Scientific anticipates substantial growth for its blockbuster product, already generating over $1 billion, with a near-term growth projection of +20% due to deeper market penetration.
The Option trial is evaluating the Watchman device as an alternative to anticoagulation following ablation procedures. Data are expected in late 2024 or early 2025, leading to label expansion and increased use.
The Champion trial results, expected in the first half of 2026, could further extend the product’s use to AF patients before ablation. Concerns about competition from new Factor 11 inhibitor anticoagulants seem overstated due to their uncertain efficacy, high cost and need for regular injections.
Mizuho noted, “All in, the momentum in Watchman is likely to continue for years driven by increased penetration through label expansions combined with updated guidelines and reimbursement tailwinds.”
BSX Price Action: Boston Scientific Corporation shares are up 0.94% at $74.18 at last check Wednesday.
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