Boston Scientific Corporation (BSX): A Bull Case Theory

We came crossed a bullish thesis connected Boston Scientific Corporation connected R. Dennis’s Substack by OppCost. In this article, we volition summarize the bulls’ thesis on BSX. Boston Scientific Corporation's share was trading astatine $93.61 as of January 27th. BSX’s trailing and forward P/E were 50.06 and 26.95 respectively according to Yahoo Finance.

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Boston Scientific Corporation develops, manufactures, and markets aesculapian devices for usage successful assorted interventional aesculapian specialties worldwide. BSX presents a tactical accidental pursuing its $14.5 cardinal acquisition of Penumbra (PEN), which caused a short-term 4% dip successful the stock. Traders person responded by selling April $80 puts, presently out-of-the-money by astir 11%, collecting $1.10 per stock successful premium, representing a full recognition of $440,000 from 4,000 contracts.

This surge successful volume, exceeding 8,700 contracts, signals high-conviction organization positioning. The strategy exploits the market’s overreaction to net dilution of $0.06–$0.08 per stock and the $11 cardinal financing utilized for the acquisition, allowing investors either to pouch the premium oregon get shares astatine a important discount if the banal continues to propulsion back.

Elevated implied volatility astir the acquisition and upcoming February net inflates enactment premiums, creating a favorable environment for enactment sellers, who expect volatility to illness erstwhile the woody is digested. The $80 onslaught sits beneath BSX’s 52-week debased of $85.98, offering a deep-value introduction constituent for 1 of the starring planetary aesculapian instrumentality companies.

Analysts from Needham and Morgan Stanley proceed to support Buy ratings, with terms targets of $121–$127, reflecting assurance successful the company’s semipermanent fundamentals. BSX has reaffirmed its double-digit EPS maturation targets for 2026–2028, and the Penumbra acquisition positions it to predominate high-growth neurovascular and thrombectomy markets. The superior hazard remains acquisition integration, including regulatory hurdles oregon marketplace cognition of overpayment, but the breakeven astatine $78.90 provides a cushion, making this a compelling risk/reward setup for investors consenting to prosecute successful tactical enactment selling.

Previously, we covered a bullish thesis on Boston Scientific Corporation (BSX) by Magnus Ofstad successful April 2025, highlighting its enactment successful minimally invasive aesculapian devices, innovation pipeline, and disciplined acquisitions driving beardown growth. BSX’s banal terms has depreciated by astir 0.7% since our sum owed to short-term marketplace reactions. R. Dennis shares a akin position but emphasizes the tactical accidental from the $14.5 cardinal Penumbra acquisition and elevated enactment premiums.