Boston Scientific Acquires Penumbra at $374 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
0mins
Source: Benzinga
- Acquisition Deal: Boston Scientific has agreed to acquire Penumbra at $374 per share, valuing the transaction at approximately $14.5 billion, indicating strong interest in the medical device market and expected to enhance Boston Scientific's product portfolio and market share.
- Shareholder Options: Penumbra shareholders can choose between cash or Boston Scientific stock, with an overall proration of about 73% cash and 27% equity, which may attract more investor participation and enhance shareholder satisfaction.
- Strong Performance: Penumbra's preliminary fourth-quarter results exceeded expectations, with shares rising 12.1% to $351.25 on Thursday, reflecting market confidence in its future growth potential and likely boosting investor sentiment further.
- Market Reaction: The acquisition news significantly boosted Penumbra's stock price, demonstrating a positive market response to M&A activities in the healthcare sector, which may also trigger similar acquisition activities among other related companies, further energizing the market.
Analyst Views on BSX
Wall Street analysts forecast BSX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BSX is 126.76 USD with a low forecast of 113.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
23 Buy
1 Hold
0 Sell
Strong Buy
Current: 93.740
Low
113.00
Averages
126.76
High
140.00
Current: 93.740
Low
113.00
Averages
126.76
High
140.00
About BSX
Boston Scientific Corporation is a global developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. The Company's MedSurg segment includes Endoscopy, Urology, and Neuromodulation. Its Endoscopy business develops and manufactures devices to diagnose and treat a range of gastrointestinal conditions with less-invasive technologies. Its Urology business develops and manufactures devices to treat various urological conditions for both male and female anatomies, including kidney stones, benign prostatic hyperplasia, prostate cancer, erectile dysfunction, and incontinence. Its Neuromodulation business develops and manufactures devices to treat various neurological movement disorders and manage chronic pain. Its Cardiovascular segment includes Cardiology and Peripheral Interventions. The Cardiology includes interventional cardiology therapies, watchman, cardiac rhythm management, and electrophysiology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
