UPDATE: Bank of America Upgrades Boston Scientific Corporation to Buy, Raises PT on Multiple Positive Factors

In a report published Monday, Bank of America analyst Bob Hopkins upgraded the rating on

from Neutral to Buy, and raised the price target from $15.00 to $16.00. In the report, Bank of America noted, “We are upgrading BSX to Buy and raising our PO to $16 for three reasons including 1) increased confidence in BSX's pipeline (LAA, Lotus) as a result of diligence at recent medical meetings; 2) our ongoing diligence around BSX opportunity to increase its operating margin has also increased our confidence in BSX's ability to significantly close the 500-800bp gap between BSX and its peers MDT and STJ; and 3) the stock has come off its highs to a degree that we can now see 20% upside in the shares. We believe BSX can grow EPS in the 11-14% range, which is a solid premium to most of medtech. Importantly a majority of the BSX margin opportunity is not dependent on revenue growth. In terms of near term catalysts we expect an in-line Q1, but there is the potential for better stent and CRM sales, and CRM margins should start to trend in the right direction this quarter. We also expect FDA approval of BSX's LAA product this year, which is one of the few interventional cardiology products to actually show a mortality benefit.” Boston Scientific Corporation closed on Friday at $12.69.