Sterne Agee to Investors: Caution! Boston Scientific Priced to Perfection

Boston Scientific Corporation BSX has gained more than 24 percent just this year – gains that analysts at Sterne Agee said it understands, but warned are overdone. Specifically, the analysts issued a “caution” that Boston Scientific’s valuation “assumes perfect execution and business fundamentals.”

Sterne Agee pointed to the resolution of the Johnson & Johnson JNJ lawsuit and more hopeful outlook on Boston Scientific’s growth as the catalysts that underpinned the move. Though the analysts noted that they also expect Boston Scientific to receive FDA approval on a number of devices, the revenue from those devices “may turn out to be lower than some investors think.”

Sterne Agee has a Neutral rating on Boston Scientific.