Brendan Caldwell Boston Scientific Corp BSX-N BUY Apr 03, 2025

It is a leader in the field so the price is at a premium for a good reason. Has had a good bounce. You could also look at MedTech and Thermo-Fisher.

It is at a new high in terms of price but not new highs in terms of Price/Book. There is no yield and a 25% downside risk.

Above FMV of $40 by 22%. Growth is fairly nice. He thinks it will hold fairly well. A bouncy kind of stock.

Still owns shares. Venture capital fund in health care business. One of most successful funds in biotech. Expecting consistent gains going forward. 

Avoid TMO because their revenues are flattening. Both trade at a high PE. BDX hasn't done much in share movement. He'd rather pay more for Boston Scientific which performs better.

It just reported a strong revenue beat with over 14.7% organic growth and raise their full-year forecast in earnings and revenues. Was down 1% today in the sell-off, but still worth buying.

They minimally invasive surgical devices, particularly in cardio-vascular, plus medical services. Last year, shares rallied 55% and is up 6% so far this year, thanks to JNJ pausing a competing device. He expects double-digit growth across the entire business, which is rare for pharma.

BSX has seen solid momentum recently due to an acceleration in revenue along with a decent track record of acquisitive growth. BSX is trading at 37x Forward P/E and growth is expected to be around 9% in the next few years. That being said, valuation is not cheap. We feel it is a decent name to own over the long term, but we would not be adding aggressively at the current valuation. we are comfortable averaging into BSX over time given the premium valuation it is trading at.
Unlock Premium - Try 5i Free