BSX – Market expectations are for Uniform ROA expansion, and management is confident about organic sales growth, operating margin, and China
|Boston Scientific (BSX) currently trades near corporate and historical averages relative to Uniform earnings, with a 21.5x Uniform P/E (Fwd. V/E’).|
At these levels, markets are pricing in expectations for Uniform ROA to recover to 25%, accompanied by 5% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to improve to 29% in 2022, accompanied by 6% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $45, representing approximately 17% equity upside for the firm.
Moreover, the firm’s most recent earnings call suggests management is confident about organic sales growth, operating margin, and China.