UPDATE: Credit Suisse Upgrades Boston Scientific Corporation to Outperform, Raises PT on Expected Positive Sales Growth

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

from Neutral to Outperform, and slightly raised the price target from $8.50 to $8.75. In the report, Nudell noted, “While there weren't any positive surprises in BSX's results today we were encouraged by management's continued commitment to returning to positive sales growth 2H13 & to improving margins despite a tough pricing environment. We expect BSX to achieve positive sales growth in 3Q13 for the 1st time in 4 years & forecast growth further improving from ~2% CC in 2H13 to ~4% in 2014 through pipeline execution & stabilizing end markets. We note that the in early 2008 (preceding the last time BSX reported 4 straight Qs of sales growth, 3Q08-3Q09) BSX shares averaged a 15.0x P/E on 2008 adj. EPS vs. just 11.2x 2013 EPS currently. While we don't expect a return to 2008 multiples, we do think confirmation of positive & accelerating sales growth will help drive multiple expansion. As a result we're upgrading BSX to OP from Neutral & raising our DCF-derived price target to $8.75 (updated TP implies 12.5x NTM P/E multiple) from $8.50 (on a lower assumed WACC).” Boston Scientific Corporation closed on Thursday at $7.54.