BSX

Boston Scientific Corp.

Healthcare


Presented:11/26/2019
Price:$42.83
Cap:$59.70B
Current Price:$86.77
Cap:$127.78B

Presented

Date11/26/2019
Price$42.83
Market Cap$59.70B
Ent Value$68.03B
P/E Ratio55.68x
Book Value$6.96
Div Yield0%
Shares O/S1,393.82M
Ave Daily Vol7,060,706
Short Int1.15%

Current

Price$86.77
Market Cap$127.78B
Boston Scientific Corp. engages in the development, manufacture and marketing of medical devices that are used in interventional medical specialties. It operates through the following segments: Cardiovascular, Rhythm Management, and MedSurg. The Cardiovascular segment comprises of technologies or diagnosing and treating coronary artery disease, and other cardiovascular disorders including structural heart conditions. The Rhythm Management segment develops implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities. The MedSurg segment focuses on Endoscopy, which provides devices to diagnose and treat a broad range of gastrointestinal, and pulmonary conditions with innovative and invasive technologies. The company was founded by John E. Abele and Pete Michael Nicholas on June 29, 1979 and is headquartered in Marlborough, MA.

Publicly traded companies mentioned herein: Abbott Laboratories (ABT), Boston Scientific (BSX), Edwards Lifesciences (EW), Intuitive Surgical Inc (ISRG), Stryker Corporation (SYK)

Highlights

The presenter is long shares of Boston Scientific in the low-mid $40s as he believes the growth acceleration for the company is under-appreciated. He is bullish on BSX over the next 3-5 years as the company is undergoing a portfolio mix shift towards higher growth and higher margin products. The presenter believes the stock will trade at ~24x NTM earnings, once investors realize organic growth will have greater duration, and sees upside of 25-30%, for a PT ~$55 by end of 2020.

BSX operates 3 segments: MedSurg (40%), Cardiovascular (40%) and Rhythm Management (20%) with ~$6B in sales in the US market. The company has strong market share ~20-50% across its end markets. On a consolidated basis, the business is growing 5-6% with minimal pricing pressure and high returns on capital.

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Idea Discussion

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