Needham upgrades Boston Scientific to 'buy' on heart device prospects

Brokerage Needham upgrades rating on Boston Scientific BSX.N to "buy" from "hold"

Citing a survey of doctors, Needham says "competition is likely to be more benign" than previously expected

BSX's device Farapulse uses pulsed field ablation technique to treat certain abnormal heart rhythm conditions

Device got FDA approval in January 2024

Farapulse initially had a single competitor in the U.S., Medtronic's MDT.N PulseSelect, but doctors strongly preferred BSX's device, according to the survey

Although brokerage thought the launches of MDT's Affera and Johnson & Johnson's JNJ.N Varipulse would increase competition, supply of Affera remains limited, it said, and there have been stroke risk concerns with Varipulse

Says BSX's two recent acquisitions of Bolt Medical and SoniVie represent new growth drivers in 2025 and beyond

As of last close, BSX has risen 5.5%