Why Boston Scientific Stock Was Sliding This Week
Key Points
Just after that, several analysts published new, bearish takes on the stock.
One felt compelled to downgrade his recommendation on the medical device giant.
Boston Scientific (NYSE: BSX) stock was tumbling notably this week. Management admitted weakness in one of the medical device maker's product lines. This, combined with several bearish analyst adjustments, was pushing the shares down by 15% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
A disheartening forecast
On Wednesday, at this year's Bernstein's Annual Strategic Decisions Conference, Boston Scientific CEO Mike Mahoney said sales of its Watchman line of heart implants might be stagnating.
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He added that revenue from these formerly thriving products is likely to be flat sequentially in both the current second quarter and the following frame. The CEO attributed this to a shift toward concomitant rather than stand-alone procedures.
Image source: Getty Images.
Zooming out, Mahoney and his team maintained their guidance for the entirety of Boston Scientific's 2026, with organic revenue growth of 6.5% to 8%.
Following this, several analysts tracking Boston Scientific stock published updates on their takes, which trended bearish. One, Lawrence Biegelsen of big bank Wells Fargo, went as far as to downgrade his recommendation on the stock to equal weight (i.e., hold) from overweight (buy). He also reduced his price target to $55 per share from the previous $75.
According to reports, Biegelsen expressed concern about the new Watchman forecast and pointed out that medications currently under development by top pharmaceutical companies could increase competitive pressure. He also cited weakness in other product categories, such as urology.
Better days ahead?
Boston Scientific has been an outperformer in years past, and, to a degree, it's been a victim of its own success lately. Not long ago, fourth-quarter and full-year 2025 results disappointed Mr. Market, in part because the company provided relatively tepid guidance.
Yet it's still a powerhouse in the medical device field, which is sure to grow as the population ages. Boston Scientific has numerous product lines beyond Watchman that could grow encouragingly, so I'd view this week's slump as an opportunity to get a fine stock in a vibrant industry at a discount.
Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.