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Stock impact report

Oppenheimer Questions $14.5B Penumbra Deal Valuation Despite Boston Scientific's (BSX) Mew Market Dominance [Yahoo! Finance]

Boston Scientific Corporation (BSX) 
Last boston scientific corporation earnings: 4/29 06:30 am Check Earnings Report
US:NYSE Investor Relations: investors.bostonscientific.com
Company Research Source: Yahoo! Finance
target on Boston Scientific to $100 from $125 with an Outperform rating. Oppenheimer is cautious on the financial optics of Boston Scientific's $14.5 billion acquisition of Penumbra. Although the deal creates a powerhouse in the thrombectomy and neurovascular markets, analysts are questioning the valuation. At $374 per share, the high purchase multiple may hinder the company's ability to generate a strong ROIC, leading the firm to question whether the timing was ideal for such a large-scale transaction. Penumbra's acquisition represents Boston Scientific's second-largest takeover in its history and marks its re-entry into the neurovascular market. The move is designed to broaden Boston Scientific's cardiovascular and neurovascular portfolios. Having divested its neurovascular business to Stryker over a decade ago, Boston Scientific CEO Mike Mahoney emphasized that the company sought a scaled platform and a strong pipeline to return to this attractive segment. Penumbra is expected Show less Read more
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