Raymond James on Monday reduced its rating on Boston Scientific to Outperform from Strong Buy, while also cutting the firm's price target to $88 from $97. The move reflects a reassessment of near-term growth dynamics even as the analyst team preserved a positive long-term view of the company.
Analyst Jayson Bedford told clients that the firm's "overarching view of Boston Scientific (BSX) as one of the highest quality, and fastest growing, companies in large cap Med Tech has not changed," but added that Raymond James is "lowering our estimates… to reflect slower trends in BSX’s key growth areas."
The revision follows weaker-than-expected momentum in two important businesses - U.S. electrophysiology and the Watchman left atrial appendage occlusion franchise. Raymond James noted those units together "represented 26% of sales in 2025, and accounted for over half of BSX’s y/y growth." As a result, the firm trimmed its growth assumptions for those businesses.
Specifically, Raymond James now projects Watchman growth of 17% in 2026 and 16% in 2027, reduced from prior assumptions of 18% and 20%. Electrophysiology trends were characterized as softer than anticipated, with deceleration in the fourth quarter and continued share erosion; the firm models EP growth of 15% and 14% over the next two years.
On clinical catalysts, Raymond James described the CHAMPION-AF trial results as a positive development for Watchman, saying the outcome "takes a worst case 'miss' scenario off the table" and clears a path toward possible label expansion in 2027. At the same time, the firm warned that CLOSURE data published in the New England Journal of Medicine is "still generating (negative) attention" and could "muddy the water" for growth prospects.
Across the company outlook, Raymond James trimmed 2026 and 2027 revenue estimates by roughly 0.5% and 1.5%, respectively. Despite those reductions, the firm argued Boston Scientific's valuation remains relatively appealing, noting that BSX trades at about 18 times projected 2027 earnings compared with peers at 21 times.
The note balances caution on near-term variability in large contributors to growth with a retained conviction in the company's long-term quality and trajectory. Investors evaluating Boston Scientific's risk-reward will face a mix of clinical data developments, competitive share dynamics in electrophysiology, and modest downward adjustments to revenue expectations.
Takeaway - Raymond James has lowered the rating and price target for Boston Scientific while keeping a favorable long-term assessment; the adjustments center on weaker-than-expected traction in Watchman and electrophysiology and modest cuts to 2026-2027 revenue estimates.