Past performance does not predict future results. Informational only, not investment advice.
Despite recent cybersecurity issues and regulatory concerns around their Watchman device, the author views BSX as a good long-term hold. The near-term headwinds may present an attractive entry point.
WATCHMAN, BSX's flagship LAAO device representing 10% of revenue, failed non-inferiority trials against anticoagulation therapy alone. The worse clinical outcomes and procedural risk will lead to de-prescription, materially damaging the company's revenue and profitability.
Boston Scientific has sold off 58% from 52-week highs to $42.98, compressing valuation multiples despite intact fundamentals (double-digit top-line growth, 21% operating margin). Aggressive cluster insider buying by CEO and four board members in the $45–$49.50 range, combined with a new $5B share repurchase authorization, signals conviction that recent operational disruptions are temporary and the stock is substantially undervalued.
BSX is trading near 52-week lows due to alleged market-maker manipulation and a manufactured cyber-attack selloff despite solid fundamentals. CEO insider buying at $43 signals undervaluation; author plans accumulation at that level.
Boston Scientific is a mission-critical medtech with strong management, solid cash flow, and strategic positioning in life-threatening condition treatments. Despite a recent 10% drop from a cyberattack and near-term guidance miss, the forward P/E of 14x is cheap relative to historical 20-25x multiples for high-moat medtech, offering an attractive entry point for long-term investors willing to wait through near-term uncertainty.
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