Wells Fargo downgrade
Wells Fargo moved Boston Scientific down to an "Equal Weight" rating from "Overweight," attributing the decision to increasing uncertainty around two of the company’s principal growth engines: its electrophysiology (EP) operations and the Watchman heart implant franchise. The bank also reduced its price target for the stock to $55, down from $75, noting that this implies a smaller upside relative to the stock’s recent close at $50.46.
Watchman guidance revision and near-term outlook
The downgrade follows Boston Scientific’s decision to lower its expectations for the Watchman device, which is designed to reduce stroke risk in patients with atrial fibrillation. Management now anticipates that U.S. Watchman sales will be sequentially flat in the second and third quarters of 2026, rather than growing at the previously forecast mid-to-high single-digit pace. Wells Fargo interprets this change as implying an approximate 2% year-over-year decline in U.S. Watchman sales for the third quarter. Analysts cited by the bank warned the slowdown could continue for "several months and quarters," with a notable contribution to the weakness coming from fewer standalone procedures.
Revised revenue and growth forecasts
On the basis of the updated guidance and their analysis, Wells Fargo now projects 2026 U.S. Watchman revenue of about $1.86 billion, which the bank characterizes as roughly 4% year-over-year growth. The firm lowered its 2026 earnings-per-share estimate modestly to $3.37 from $3.39 and trimmed its 2027 EPS estimate to $3.69 from $3.74. In addition, the bank cut its organic sales growth projections for both years.
Competitive and clinical pressures
Wells Fargo flagged intensifying competitive risk for Boston Scientific in left atrial appendage closure (LAAC), naming several prospective threats from rivals that have upcoming product launches and trial data. Competitors identified include Abbott Laboratories, Bristol Myers Squibb and Johnson & Johnson. The bank also noted a rising optimism around the anticoagulant milvexian; if milvexian demonstrates a lower bleeding risk while maintaining efficacy comparable to Eliquis, it could reduce demand for Watchman procedures.
Electrophysiology concerns
Separately, the bank expressed caution about Boston Scientific’s EP division, expecting the company to face heightened competition in pulsed-field ablation technologies beginning in 2028. Wells Fargo observed that rivals such as Medtronic and Johnson & Johnson appear to have a "significant head start" on next-generation products. The bank also pointed out delays in Boston Scientific’s Faraflex program, which contribute to the view of increased execution risk in EP.
Other business-line pressures and product delays
Beyond EP and Watchman, Wells Fargo highlighted additional areas of weakness across Boston Scientific’s portfolio. The cardiac rhythm management segment remains pressured amid a delay of the Empower leadless pacemaker to 2027. The urology division is under strain from slowing AXNX growth and increasing competition in stone management products.
M&A and regulatory considerations
The bank also cautioned that Boston Scientific’s proposed acquisition of PEN could encounter integration and regulatory challenges. Those risks might necessitate divestitures of product lines with combined sales totaling as much as $250 million.
Market implications
Wells Fargo’s actions - the downgrade, reduced price target and slightly lowered EPS forecasts - reflect a more guarded view of Boston Scientific’s near-term growth trajectory, driven by the Watchman slowdown, competitive headwinds in EP and a handful of product delays and division-level pressures. Investors and market participants will likely watch Watchman procedure volumes, EP program milestones and any regulatory developments around the PEN acquisition closely as indicators of whether the company can regain the earlier growth trajectory assumed in prior forecasts.
Financial detail recap
- Rating changed to Equal Weight from Overweight.
- Price target cut to $55 from $75; recent close noted at $50.46.
- Wells Fargo projects 2026 U.S. Watchman revenue of about $1.86 billion, or roughly 4% annual growth.
- 2026 EPS estimate trimmed to $3.37 from $3.39; 2027 EPS cut to $3.69 from $3.74.