BSX – Market expectations are for Uniform ROA to rebound, but management may have concerns about growth, their therapies, and new product launches

• Boston Scientific Corporation (BSX:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.6x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their growth, Fast-Acting Sub-perception Therapy (FAST), and the launch of their WaveWriter Alpha SCS system.
• Specifically, management may lack confidence in their ability to sustain adjusted EPS growth, Asia Pacific and Emerging Markets sales growth, and record drug-eluting portfolio sales within arterial. Moreover, they may have concerns about the launch of their next-gen WaveWriter Alpha SCS system, the efficacy of their Fast-Acting Sub-perception Therapy (FAST), and the potential of their Elegance registry study. Furthermore, management may lack confidence in their ability to meet their operational revenue growth outlook and maintain growth in their deep brain stimulation business. Finally, they may have concerns about the impact of pandemic-related headwinds, particularly in Japan, and they may lack confidence in their ability to gain more market share in the U.S.