Report
Valens Research

BSX - Embedded Expectations Analysis - 2021 01 08

Boston Scientific Corporation (BSX:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 24.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about 2021 guidance, EXALT-D's expansion, and ACURATE neo2's potential

Specifically, management is confident in their ability to grow at the high end of their peer group in 2021, deliver double-digit EPS growth, and expand EXALT-D internationally. In addition, they are confident in ACURATE neo2's potential in Europe and in the WATCHMAN franchise's consignment model. Moreover, management is confident in the benefits of the BTG plc acquisition and that new patient referral rates are recovering
Underlying
BOSTON SCIENTIFIC CORPORATION

Boston Scientific develops, manufactures and markets medical devices. The company's Medical Surgical segment consist of: Endoscopy, which develops and manufactures devices to diagnose and treat a range of gastrointestinal and pulmonary conditions; and Urology and Pelvic Health, which develops and manufactures devices to treat various urological and pelvic conditions. The company's Rhythm and Neuro segment includes: Cardiac Rhythm Management, which develops and manufactures implantable devices to treat cardiac abnormalities; and Electrophysiology, which develops and manufactures medical technologies used in the diagnosis and treatment of rate and rhythm disorders of the heart.

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Valens Research
Valens Research

In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:

  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
  • Stock analyst recommendations are not grounded in disciplined financial analysis
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  • Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available

We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.

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  • The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming

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