Analyst Note| Debbie S. Wang |
Boston Scientific posted an impressive rebound in the second quarter compared with the muted prior-year period, and we’re leaving our fair value estimate unchanged, as our assumption for a rise in the U.S. corporate tax rate largely offset cash flows realized. Perhaps we were even more impressed with Boston’s gains against the more normal performance seen in second-quarter 2019. In particular, endoscopy, urology, interventional cardiology, and neuromodulation all delivered strong, organic double-digit gains over the same quarter in 2019. While we think this rebound is partly reflective of the resumption of non-pandemic procedures, we also think it is driven by Boston’s new product portfolio that has allowed it a leg up on competition. This underscores the strength of Boston’s narrow economic moat, in our minds.