Boston Scientific Delivers Solid Third Quarter; We're Leaving Our Fair Value Estimate Unchanged

Boston Scientific posted solid third-quarter results that leave the firm on track to meet our full-year projections on the top and bottom lines; we’re holding steady on our $45 fair value estimate. Though we had been concerned that the rise of the delta variant would dampen nonpandemic procedure growth during the quarter, the effect was relatively mild, in our view, and more than offset by the strength of new product launches. While the pandemic remains a key factor influencing near-term performance for medical device firms, we see little in the way of fundamental changes to demand or Boston’s ability to innovate. We remain confident in the firm’s narrow economic moat and its intangible assets.