UPDATE: Credit Suisse Downgrades Boston Scientific Corporation to Neutral on Valuation

In a report published Wednesday, Credit Suisse analyst Bruce Nudell downgraded the rating on Boston Scientific Corporation

from Outperform to Neutral, but reiterated the $8.50 price target. In the report, Nudell noted, “We're downgrading BSX to Neutral from Outperform, as the shares are now within 8% of our unchanged $8.50 DCF-derived target price and no longer have enough upside in our view to warrant an Outperform rating. While we do not see BSX's current valuation of 10X 2014 P/E ex-amortization as stretched (EPS and P/E in the financial and valuation metrics box in our report include amortization), we believe further upside likely requires outperformance relative to expectations which have been elevated following the company's sequential top-line improvement in 4Q12 and Feb. investor day. Our target price implies an 11x P/E multiple on our 2014 EPS (examortization), in line with the 2014 P/E multiples (ex-amortization) we use for STJ and MDT.” Boston Scientific Corporation closed on Tuesday at $7.89.