Boston Scientific Is 'Riding The Wave Of Business Improvement,' Says Raymond James; Initiates At Outperform

Shares of Boston Scientific Corporation

are up on Friday trading, after Raymond James analyst Jayson Bedford initiated coverage on its shares with an Outperform rating. A $21 price target accompanied the score. The analyst highlights that they have missed a big year-to-date run (36 percent) in the stock "driven by earlier-than-expected product approvals and the removal of a key litigation overhang," but at 17x 2016E EPS (~1.0x PEG), they "still do not think the valuation fully captures the upcoming acceleration in earnings growth." "Current business momentum and a rich new product lineup trumps exposure to slower-growth end markets, and a detailed path to margin expansion offers visibility into a rapidly improving business." Raymond James models 17% EPS growth in 2016/17, which should make Boston Scientific one of the fastest growing large-cap med tech companies. For 2015, the firm estimates EPS of $0.89; for 2016, $1.05 per share; and for 2017 $1.22 per share.