Boston Scientific (BSX): Evaluating Valuation Following Earnings Beat and Raised 2025 Guidance

Boston Scientific (NYSE:BSX) just delivered a second-quarter earnings report that has caught the attention of market watchers. The company not only beat expectations for adjusted earnings and revenue but also raised its net sales outlook for 2025, signaling growing confidence in its growth trajectory. Investors paying close attention may notice that product momentum in lines like FARAPULSE and WATCHMAN is helping the company weather the recent global recall of its ACURATE TAVR system. This suggests agile leadership in the face of challenges.

Against this fast-moving backdrop, Boston Scientific’s stock has been on a roll. The stock is up nearly 34% over the past year with a strong 19% return so far in 2025. While momentum paused in the past month, longer-term performance remains notable, especially after a three-year return of 163%. Recent events, including upward sales revisions and strategic product expansions, have contributed to the company’s story even as investors weigh the impact of the recall.

After such a sharp climb and raised outlook, is Boston Scientific starting to look undervalued, or has the market already factored in the company’s future growth?

Most Popular Narrative: 14.5% Undervalued

According to community narrative, Boston Scientific is viewed as undervalued by analysts, with robust financial projections supporting a higher fair value.

Investment in proprietary, high-margin technologies (such as next-generation mapping, advanced diagnostic tools, and differentiated urology or neuromodulation pipelines), combined with successful integration of recent acquisitions including Axonics, SoniVie, Intera, and Silk Road, expands Boston Scientific's addressable market. This approach is also likely to drive margin expansion as the product mix improves.

What is fueling this bold valuation upgrade? It is not just the headline growth rates. Analysts are focusing on critical operational shifts and future profitability that could set a new industry benchmark for Boston Scientific. Want to uncover the pivotal assumptions behind this impressive price target? The detailed breakdown might surprise you.

Result: Fair Value of $124.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent cost pressures and intensified competition, especially from overseas, could limit Boston Scientific’s future margin resilience and revenue expansion.

Find out about the key risks to this Boston Scientific narrative.

Another View: The Market Multiple Perspective

However, when you compare Boston Scientific’s current price to where the broader industry is trading, the stock appears costly rather than cheap. This raises a question for the optimistic narrative: could the market be getting ahead of itself?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Boston Scientific for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Boston Scientific Narrative

If you have a different angle or want to investigate the facts firsthand, you can craft your own Boston Scientific story in just a few minutes and do it your way.

A great starting point for your Boston Scientific research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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