Boston Scientific stock tumbles after Raymond James slashes forecasts and rating

Boston Scientific (BSX) has faced a setback as Raymond James lowered its revenue forecasts and stock rating. The financial firm cut its 2026 and 2027 projections by 0.5% and 1.5% respectively, citing slower growth in key product areas. Despite this, the company recently secured FDA clearance for a new medical device.

The downgrade comes as BSX shares hover near yearly lows, trading at around $65.26. This marks a 30% drop over the past 12 months, though the firm's market value remains substantial at roughly $102.8 billion.

Raymond James adjusted its stance on BSX, downgrading the stock from Strong Buy to Outperform and reducing the price target from $97 to $88. The decision followed concerns about weakening demand for U.S. electrophysiology and Watchman products, both critical revenue drivers for the company.

The Watchman device, used to reduce stroke risk in atrial fibrillation patients, had previously shown strong performance. Its success in the CHAMPION-AF trial helped propel BSX's market capitalisation from $60 billion in 2019 to over $110 billion by early 2026. However, recent trends suggest slower adoption, prompting caution among analysts. Despite the downgrade, Raymond James still backs BSX's long-term prospects. Other firms, including Evercore ISI, Bernstein, and Stifel, have kept *Outperform* or *Buy* ratings on the stock. The company has also maintained solid financial health, with nearly 20% revenue growth and a PEG ratio of 0.64. In a positive development, BSX received FDA 510(k) clearance for its Asurys fluid management system. This approval adds a new product to its portfolio, potentially offsetting some of the pressure from slower growth in other segments.

BSX now faces a mixed outlook. While its share price has fallen to a 52-week low, the company continues to expand its product line with regulatory approvals. Analysts remain divided, with some firms maintaining optimistic ratings despite the recent downgrade. The company's next steps will likely depend on how well its newer offerings perform in the market.