Boston Scientific: Healthy Growth

Boston Scientific Corp. (BSX) competes in the cardiovascular, endosurgery and neuromodulation markets. All 3 segments are experiencing strong sales growth and should remain relatively insulated from the current economic crisis.

BSX has historically grown through acquisition, which has led to earnings-quality concerns. Recent positive news on stents will bode well. Trial results for Abbott Labs' (ABT) XIENCE stent, which BSX markets under a private label, were positive. And, BSX received U.S. approval to market its TAXUS Liberte and Express2 stents.

BSX reported Q408 and FY08 results in-line with management guidance. Several new products are expected to be launched in 2009, and we expect a rebound in the stock this year. Thus, we reiterate our Buy rating.

Rajarshi Maulik contributed to this report.

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