Boston Scientific (BSX)?

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Summary

The post analyzes Boston Scientific (BSX) after a ~50% drop from $90 to $44, following its $14.5B acquisition of Penumbra (PEN) and a $2B accelerated share repurchase (ASR).
The author highlights strong EPS growth ($3.06 → $3.25 est. this year) and the possibility that PEN shareholders will elect cash, avoiding dilution and increasing leverage but leaving BSX with a cleaner equity base.
The thesis is that BSX offers value at the current price, despite no dividend, because capital is being deployed for growth and buybacks, with Value Line also projecting above-average appreciation potential through 2029-2031.
Quality assessment: This is well-researched DD; the author provides specific data (Value Line estimates, acquisition terms, ASR details) and a logical value-investing framework.

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u/Compound30 Reddit r/ValueInvesting

BSX trades at $44, down from $90 in January, with Value Line estimating EPS of $3.25 this year and $3.50 next year (P/E ~13.5x), and the company completed an $2B ASR at ~$53/share. The market overreacted to the Penumbra acquisition and debt concerns; if PEN shareholders take cash (as implied by the stock drop), BSX avoids dilution and can use strong cash flows to de-lever, while EPS continues to grow. Buying BSX at a 13-14x forward P/E with double-digit EPS growth and a management team that aggressively repurchases shares provides a margin of safety and upside potential over the medium to long term. Integration of Penumbra could underperform; debt load from the $14.5B acquisition may pressure margins or trigger downgrades; sector rotation away from medtech could keep the stock depressed.

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