Boston Scientific (BSX) Stock Falls 9% After Watchman Trial Data and Analyst Downgrade

TLDR

• BSX stock fell 9% to $62.93, its lowest close since January 2024
• Trial data for the Watchman FLX device showed non-inferior results vs. blood thinners, but investors flagged a higher ischemic stroke rate (3.2% vs. 2%)
• Raymond James downgraded BSX from Strong Buy to Outperform, cutting its price target from $97 to $88
• The downgrade cited slower-than-expected growth in U.S. electrophysiology and Watchman, two areas that made up over half of BSX’s year-over-year growth
• BSX is now down 34% year-to-date, vs. a 7.1% decline for the S&P 500

Boston Scientific had a rough Monday. The stock dropped 9% after a one-two punch: trial data that didn’t land the way the company hoped, and a downgrade from Raymond James.

Boston Scientific Corporation, BSX

The CHAMPION-AF trial results for the Watchman FLX device were presented at a medical conference on March 30. On paper, the data looked solid. The device was non-inferior to modern blood thinners like Eliquis and Xarelto. Watchman users also saw a reduction in non-procedural bleeding risk, hitting the study’s primary endpoint.

But investors zeroed in on one number. Patients using the Watchman device had a 3.2% ischemic stroke rate, compared to 2% for those on blood thinners. That gap, even if small, was enough to spook the market.

It’s worth noting the difference was not statistically significant. It also wasn’t a primary outcome of the study. Researchers plan to follow patients for five years to get a fuller picture on stroke risk.

Experts Push Back on the Selloff

The study’s co-chair, Marty Leon, called the data “a very strong endorsement” for expanding the device’s use. He framed the tradeoff clearly: a 0.33% annualized increase in stroke or embolization versus a roughly 2.6% reduction in bleeding. Boston Scientific’s chief medical officer, Ken Stein, echoed that view, pointing out that stroke rates in both groups were “incredibly low.”

Truist Securities noted that overall conference feedback was positive. Leerink Partners said in-person reaction gave them more confidence that trial results would support higher Watchman procedure volumes going forward.

Still, the stock didn’t care. BSX closed at $62.93, its lowest level since January 30, 2024.

On the same day, Raymond James downgraded BSX from Strong Buy to Outperform and cut its price target from $97 to $88. The firm cited slower momentum in two of BSX’s biggest growth engines: U.S. electrophysiology and Watchman, which together made up 26% of sales in 2025 and accounted for more than half of the company’s year-over-year growth.

Raymond James Stays Constructive, but Trims Estimates

Raymond James analyst Jayson Bedford was clear that this wasn’t a loss of faith. The firm still views Boston Scientific as one of the highest-quality, fastest-growing companies in large-cap medical technology. The downgrade was more about lower near-term conviction than a change in the long-term story.

The firm trimmed its 2026 and 2027 revenue estimates by roughly 0.5% and 1.5%. It now models Watchman growth at 17% and 16% over the next two years, down from earlier forecasts of 18% and 20%. EP growth estimates came down to 15% and 14%.

Despite the cuts, Raymond James argued the valuation still looks attractive. BSX trades at around 18 times projected 2027 earnings, versus 21 times for peers.

Several other firms — including Bernstein, Evercore ISI, Stifel, Truist, and Jefferies — still hold Buy or Outperform ratings, with price targets ranging from $88 to $120.

BSX is down 34% year-to-date. The stock hit a 52-week high of $110 earlier in the year.

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