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Stockchase Opinions

Ross HealyBoston Scientific CorpBSXDON'T BUYApr 17, 2023

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.

$51.61

Stock price when the opinion was issued

$45.44

As of Jun 18, 2026. Market Open.

biotechnologypharmaceutical
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PAST TOP PICK
(A Top Pick Dec 28/22, Up 27%)

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

HOLD

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

BUY

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.

TOP PICK
World's leader in med tech. He's doubling down on US healthcare. Leader in cardio surgical technology. Healthcare, neglected through Covid, will be a very high growth area for the next couple of years. No dividend. (Analysts’ price target is $49.96)
PARTIAL SELL
Can be a safe haven stock. Health care offers defence. But BSX has had a big run and he expects this market to roll over a bit. Take some profits and wait for opportunities, which could mean buying this back in 2-3 months. Has fantastic fundamentals, but valuation is rich.
BUY
Likes it very much. Higher growth. Under pressure post-earnings. Predominantly everything cardiovascular. Covid put off elective surgeries, and these are starting to return. For the rest of 2022, increased volume might offset inflationary pressures.
WAIT
She has owned it for many years and it has not done anything. The COVID scares cast shadows over medical procedure demand. As a medical device provider it has faced head winds. Demand should ramp back up, but it will take confidence by patients to return for procedures.
PAST TOP PICK
(A Top Pick Dec 01/20, Up 22%) Covid delayed surgeries. Labour shortages. Both are holding the stock back, but will improve. Solid, long-term core investment.
HOLD
Holds other healthcare plays. There is a good place for these names in portfolios. The organic growth from resuming treatment and surgeries will be interesting to follow. Wouldn't worry about the pullback.
WAIT
BSX vs. MDT Two great companies. In the implantable medical device business. Loves the area. Too expensive, as investors have flocked to them and the multiple has increased. Would love to own both if prices came down substantially.
BUY
Medical device maker. It has been a bit of a laggard. It was the market darling until 2019 and then they started to have a couple of misses and issues with products. He thinks these are all transient issues. He thinks in 2022 they will grow revenue in high single digits. He is going to stick with it and would buy it here.
PAST TOP PICK
(A Top Pick Dec 01/20, Up 33%) He would buy it again. They had a decade of no-growth. In the last 3-5 years they introduced successful products that got their revenue going again. A lot of their procedures are not necessary today but will be over the next few months. The volumes are coming back. It is at the cheaper end of a lot of healthcare stocks.
BUY ON WEAKNESS
It's one of Abbott's biggest competitors. It's in an attractive industry, medical equipment, where companies earn good returns. But BSX's valuation is high, gotten ahead of itself (like the whole sector), so wait for a pullback. BSX had a strong quarter as non-elective surgeries have bounced back, but its PE is rich.
PAST TOP PICK
(A Top Pick Jul 14/20, Up 23%) It had a couple of disappointing news items involving a couple of their products. They are playing catch-up on elective surgeries. It is one he really likes and continues to hold.