RBC Capital Adjusts Price Target#
RBC Capital has lowered its price target for Boston Scientific Corp. (NYSE:BSX) from $105 to $100 while keeping an Outperform rating on the stock. This adjustment comes after the company provided updated growth guidance for 2026.
First-Quarter Performance#
In its first-quarter report for 2026, Boston Scientific exceeded expectations, achieving sales and earnings per share that were better than anticipated. Specifically, sales were up by about 50 basis points, and earnings per share surpassed estimates by 130 basis points. However, the company has revised its growth forecast, now expecting organic growth of 6.5-8.0% year-over-year.
Future Growth Outlook#
RBC Capital views the reduction in guidance as a sensible move and considers the first quarter a pivotal moment for the company. They anticipate that the second quarter will be the lowest point, with organic growth projected at 5-7%. Following this, they expect growth to improve in the following quarters, driven by new product launches and enhancements in existing business lines. The stock has seen a decline of about 8% in the past week and is down 38% year-to-date, currently trading at $64.87.
Share Repurchase Program#
Additionally, Boston Scientific has announced a $2 billion share repurchase program, which is separate from its revised guidance for 2026. This program is expected to support the company's long-term prospects across various product categories, despite the recent challenges. Analysts from Jefferies and BTIG have also adjusted their price targets for the stock, reflecting a cautious outlook while maintaining a Buy rating.