A down grade-sort of...Let's see how market reacts.
Leerink Swann downgraded Boston Scientific (NYSE: BSX) from Outperform to Market Perform with a price target of $6.00.
The firm comments, "With a strong free cash flow yield of ~11%, BSX shares could represent an attractive total return vehicle to long-term focused value investors. In the near-term, with ~50% of sales facing market declines and share losses, we think shares could trade in a tight range. As improving product mix and recent restructuring initiatives begin to bear fruit, BSX could potentially drive double-digit EPS growth in 2014 and beyond. We don’t expect BSX to return to top-line growth until 2014 at the earliest and see limited upside to shares from current levels pending clarity on: (1) New CEO Mike Mahoney’s growth strategy once he starts on Nov. 1; (2) BSX's capital allocation strategy; (3) Long-term sales growth drivers; and, (4) Timing and extent of potential MedTech market recovery."
If and a big if at that, if BSX closes green today it would be the most bullish sign possible. Overcoming a "mild" down grade ($6 target) and shaking out the weak hands which is always done before the take off, there is ever going to be one. All we (i) can do is wait. I remain bullish.