Canaccord Genuity has reduced its price target on Boston Scientific (BSX) to $112.00 from $131.00 but continues to carry a Buy recommendation on the maker of cardiovascular and electrophysiology devices.
The revision follows Boston Scientific's fourth-quarter earnings release, which reported revenue of $5,286 million, a 15.9% increase versus the year-ago period. That top-line figure closely tracked Canaccord's projection and the consensus view, both of which were around $5,280 million. On profitability metrics, adjusted earnings per share of $0.80 outperformed Canaccord's $0.79 estimate and the consensus level of $0.78.
Canaccord identified weakness in two franchises that historically have contributed strongly to the company's growth profile - Electrophysiology (EP) and the Watchman left atrial appendage closure (LAAC) business. The broker noted that while worldwide EP revenue rose 35% organically year-over-year in the quarter, EP sales were flat sequentially in the U.S. That sequential flatness in the domestic EP channel prompted concerns at Canaccord about whether adoption of Pulsed Field Ablation - PFA - may be plateauing amid a rising competitive set.
Company management has projected that the EP market can expand by more than 15% in 2026, but it also acknowledged that new competitor product launches will exert pressure on Boston Scientific's market share. Management estimates that PFA was used in roughly 70% of atrial fibrillation ablations during fiscal year 2025.
To counterbalance potential growth deceleration tied to PFA maturation, Canaccord highlighted Boston Scientific's recent strategic actions, including acquisitions and an active product pipeline. The firm specifically pointed to planned introductions of a peripheral intravascular lithotripsy - IVL - system in 2026 and a coronary IVL system in 2027 as elements of the company's growth strategy. In its commentary, Canaccord stated that Boston Scientific "retains the growth drivers, operating discipline, and culture that defines best-in-class strategic MedTech."
Other broker responses to the quarter have been mixed. Boston Scientific reported fourth-quarter 2025 revenue of $5.29 billion, representing 12.7% organic year-over-year growth, a result that modestly exceeded Oppenheimer's and consensus estimates. However, GAAP earnings per share of $0.45 missed analyst expectations, which ranged from $0.51 to $0.53.
In the aftermath of the results, Oppenheimer maintained an Outperform rating and left its price target at $100.00. Truist Securities reduced its price objective to $95.00 from $120.00, describing a roughly 17% decline in Boston Scientific's share price as excessive. Stifel and BTIG each trimmed targets to $110.00 but kept Buy ratings on the stock, citing underperformance in the Electrophysiology division, in particular around the Farapulse PFA technology. BTIG also noted that both the Farapulse PFA and the Watchman LAAC franchises fell short of fourth-quarter sales expectations.
Looking forward, management's 2026 guidance outlined adjusted earnings per share in a range between $3.43 and $3.49. The midpoint of that range sits slightly below the street average analyst estimate of $3.47, a detail that reflects a cautiously tempered outlook amid the mixed results across divisions.
Overall, the episode leaves Boston Scientific with solid revenue growth but identifiable pressures in specific product lines that are shaping analyst valuation actions and near-term expectations. The company is responding with product rollouts and acquisition activity intended to sustain growth, while broker views differ on how investors should weigh near-term execution issues against longer-term strategic positioning.
Key points
- Canaccord lowered its BSX price target to $112 from $131 while maintaining a Buy rating.
- Q4 revenue was $5,286 million, up 15.9% year-over-year; adjusted EPS was $0.80, above estimates.
- Electrophysiology and Watchman underperformance drove concern; management expects EP market growth of more than 15% in 2026 but notes upcoming competitive launches.
Risks and uncertainties
- Competition and potential saturation in the PFA adoption curve could pressure EP revenues - relevant to the medical devices and healthcare sectors.
- Underperformance in Watchman and EP franchises could weigh on near-term earnings and investor sentiment - relevant to healthcare and equity markets.
- Guidance midpoint for 2026 adjusted EPS falls slightly below analyst consensus, creating execution risk around meeting market expectations - relevant to investors and financial markets.