Boston Posts Strong Q2 Performance; Our FVE Is Unchanged

Boston Scientific posted second-quarter results that exceeded consensus expectations (based on FactSet), but the firm remains on track to meet our full-year projections and we’re holding firm on our fair value estimate. Boston racked up 10% quarterly revenue growth on an operational basis, of which 300 basis points reflects acquisitions. Nonetheless, the 7% organic revenue growth year over year was still impressive in a medical technology field that has seen the market growing closer to 5%. We are confident in Boston’s narrow moat, based primarily on intangible assets. Importantly, the firm has demonstrated a solid track record for innovation, which when coupled with Boston’s formidable commercial organization, can deliver outsize results.