Boston Scientific Is 'Riding The Wave Of Business Improvement'

Shares of Boston Scientific Corporation (NYSE: BSX) were up on Friday morning after Raymond James analyst Jayson Bedford initiated coverage with an Outperform rating and $21 price target.

The analyst highlights that the firm has missed a big year-to-date run (36 percent) in the stock "driven by earlier-than-expected product approvals and the removal of a key litigation overhang," but at 17x 2016E EPS (~1.0x PEG), they "still do not think the valuation fully captures the upcoming acceleration in earnings growth."

"Current business momentum and a rich new product lineup trumps exposure to slower-growth end markets, and a detailed path to margin expansion offers visibility into a rapidly improving business."

Raymond James models 17 percent EPS growth in 2016/2017, which should make Boston Scientific one of the fastest-growing large-cap med tech companies. For 2015, the firm estimates EPS of $0.89; for 2016, $1.05 per share; and for 2017 $1.22 per share.

Shares traded recently at $17.85, up 0.11 percent.