Oppenheimer analysts shifted ratings on U.S. medical device makers, lifting Boston Scientific to Outperform while cutting rating on DexCom to Perform.
Boston Scientific was upgraded from Perform with a $125 price target.
Analysts said the company represents “one of the best large-cap MedTech growth stories,” given its steady product pipeline, recent deals and strength in its electrophysiology unit, particularly with the Farapulse pulsed field ablation device.
They forecast annual growth of 11-13%, which was well above the broader medtech sector.
Insulet was reiterated at Outperform and its target price raised to $365 from $324 following second-quarter results. Though analysts say they have kept a positive view on the maker of insulin delivery systems.
Coverage of Tandem Diabetes was also assumed with an Outperform rating, though its target price was cut to $22 from $44. Oppenheimer cited second-quarter performance and valuation adjustments.
DexCom was downgraded to Perform on concerns over its continuous glucose monitoring business.
The analysts highlighted issues with the G7 device’s accuracy, rising competition from Abbott’s dual-analyte sensor, and future risks from competitive bidding in the durable medical equipment channel.
It could weigh on margins despite strong sales potential.
“While DexCom is doing everything in its control to navigate various challenges on the horizon and 2H25 might end up being mildly conservative, we step to the sidelines for now,” Oppenheimer wrote.
Although Insulet and Tandem face execution risks, they still offer attractive growth opportunities, while Boston Scientific’s diversified portfolio and new technologies set it apart among large-cap peers.
Source :
https://www.investing.com/news/stock-market-news/oppenheimer-sees-stronger-growth-at-boston-scientific-4229640
