Evercore ISI raised the firm’s price target on Boston Scientific (BSX) to $56 from $54 and keeps an Outperform rating on the shares. If there were any lingering doubts after the recent reports from Intuitive Surgical (ISRG) and Abbott (ABT) about a Medtech procedure rebound, the firm thought Boston Scientific "shut it down conclusively," the analyst tells investors. However, the firm thinks the reason for a "tepid" reaction to Boston Scientific’s report was confusion over M&A given recent news articles that pointed to Boston looking at ShockWave Medical (SWAV). While such a deal might fit strategically, it would be EPS dilutive and Evercore reads management commentary about being "happy with current BBB+ rating and aim to get to investment grade" as lowering the odds of a deal, adding that Boston reiterated a message of tuck-in M&A being their "sweet spot."
Published first on TheFly
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