BSX – Market expectations are for Uniform ROA to remain stable, but management may have concerns about profitability and revenue
- Boston Scientific (BSX) currently trades near corporate but below historical averages relative to Uniform earnings, with a 25.5x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to remain stable at 27% levels, accompanied by 5% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to improve to 29% in 2023, accompanied by 3% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $44, representing approximately immaterial equity downside for the firm.
Moreover, the firm’s most recent earnings call suggests management may have concerns about profitability and revenue.