Analyst Note| Debbie S. Wang |
Though second-quarter results were clearly depressed by the COVID-19 crisis, Boston Scientific also saw relatively robust return of demand for its products through May and June, and we’re raising our fair value estimate to $33 per share, after adjusting our near-term expectations upward. As we’ve seen with other cardiac device makers, these cardiac rhythm, interventional cardiology, and structural heart procedures have staged a fairly strong return as states began to reopen. We continue to expect improving volume through the second half of 2020, though there may be some geographic areas within the U.S. that may rachet back on non-pandemic related procedures if hospitals reach capacity with COVID-29 patients. We stand behind Boston’s narrow moat rating and see little to change our view of the firm’s competitive advantages.