|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
DECEMBER 6, 2004
By Gene G. Marcial Boston Scientific: Anemic -- For Now Boston Scientific (BSX ) is far from robust -- since its summer recall of 100,000 coronary stents and since its lowered fourth-quarter profit forecast. Analysts quickly cut estimates, driving shares down from 46 in May to 33.36 on Nov. 23.  But John Maloney of M&R Capital Management, which owns stock, says that BSX -- a maker of surgical devices for cardiology, oncology, and urology -- is too undervalued to ignore. With its leadership in stents (70% of the market vs. 30% for Johnson & Johnson (JNJ
)) and its "rich pipeline" of other products, BSX shouldn't be trading so low, he argues. "It is the cheapest in the medical-device group," he says, selling at only 15 times his 2005 profit estimate of $2.25 a share, and 13.6 times his $2.50 for 2006. His 12-to-18-month target: 50 -- or 20 times his 2006 estimate.
BSX may lose market share in stents, he says, as competition heats up, but it will remain No. 1. Non-stent products, such as tools for cardiac surgery, will offset any loss. Maloney sees sales of $5.5 billion in 2004, $6.2 billion in 2005, $7 billion in 2006, and $8 billion in 2007. Michael Weinstein of J.P. Morgan Securities (JPM ), who rates BSX "outperform," is confident of its "long-term prospects -- driven by a solid product pipeline." Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  See Gene on Fridays at 1:20 p.m. EST on CNNfn's The Money Gang.
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
