Evercore ISI reiterated an Outperform rating and a $112.00 price target on Boston Scientific (NYSE:BSX), and placed the shares on its Tactical Outperform list prior to the release of fourth-quarter results. In its assessment, the firm regards recent market apprehension about procedural slowdowns and investor questions tied to Boston Scientific’s purchase of Penumbra as overstated.
The research note cites electrophysiology performance reported by Abbott and Johnson & Johnson, which showed international slowdowns of roughly 600 basis points on a comparable adjusted basis. Evercore interprets those data points not as an industry-wide deterioration but as consistent with competitive dynamics tied to Boston Scientific’s share gains in specific markets.
Central to Evercore’s argument is Boston Scientific’s expansion in Japan, where the company introduced its Farapulse product in early 2025. The firm believes Japan will follow a similar adoption curve to the U.S., where the product reached about 50% penetration within two years. Evercore projects that this adoption pattern in Japan could contribute a few hundred million dollars of incremental revenue in fiscal 2026.
On the strategic front, Evercore highlights market feedback around the Penumbra acquisition, announced on January 14. In the firm’s survey of market participants, 100% of respondents characterized the transaction as strategic rather than defensive. A majority of those surveyed estimated that Penumbra could contribute more than 30 basis points to Boston Scientific’s overall organic growth.
Valuation considerations underpin Evercore’s constructive stance. At roughly 26 times price-to-earnings, the firm describes Boston Scientific shares as compelling in light of what it frames as a "+10% org & teens EPS profile." Evercore projects a 5% to 10% upside on earnings from the current base, reflecting the firm’s view of earnings growth potential relative to the share price.
The $14.5 billion acquisition of Penumbra is seen by multiple analysts as a strategic enhancement to Boston Scientific’s cardiovascular franchise, bringing thrombectomy and embolization devices into the company’s portfolio. Morgan Stanley expects roughly $200 million of synergies by the third year post-close, arising from sales improvement and cost-reduction opportunities.
Rating agencies and other brokerages have largely echoed a favorable tone. Fitch Ratings affirmed Boston Scientific’s Long- and Short-Term Issuer Default Ratings at 'A-' and 'F1', and revised the outlook to Positive from Stable. Mizuho reiterated an Outperform rating with a $140.00 price target, valuing the deal at approximately 10.5 times Penumbra’s trailing twelve-month sales. Truist Securities maintained a Buy rating, describing the acquisition as a strategic fit for Boston Scientific’s growth profile. Needham kept a Buy rating and a $121.00 price target, and noted no apparent antitrust hurdles or competing bids. Morgan Stanley characterized the stock as undervalued following the acquisition announcement and emphasized its strategic rationale.
Taken together, these analyst actions and ratings suggest a broadly positive reception across Wall Street to Boston Scientific’s recent strategic moves, while Evercore’s positioning on the Tactical Outperform list signals the firm’s expectation that near-term market concerns may be transitory.
Context and next steps
Investors will be watching Boston Scientific’s upcoming fourth-quarter report for confirmation that the company’s procedure volumes, international trends and integration plans for Penumbra align with analyst expectations. Evercore’s projection of incremental revenue from Farapulse adoption in Japan and the survey-based optimism about the Penumbra deal are central to its continued Outperform view.