Boston Scientific Acquires Penumbra for $14.5 Billion in Cash and Stock
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Deal Details: Boston Scientific has agreed to acquire Penumbra in a cash-and-stock deal valued at approximately $14.5 billion, with Penumbra's share price set at $374, and the transaction expected to close in 2026, reflecting ongoing consolidation in the medical devices sector.
- Penumbra's Financial Performance: Penumbra reported preliminary fourth-quarter 2025 revenue expectations between $383 million and $384.8 million, indicating year-over-year growth of approximately 21% to 22%, which bolsters investor confidence in its growth trajectory.
- Boston Scientific's Financing Plan: Boston Scientific plans to fund the $11 billion cash portion through a mix of existing cash and new debt, projecting adjusted earnings dilution of 6 to 8 cents per share in the first year post-transaction, with results trending toward neutral or accretive in the second year.
- Market Reaction: Following the acquisition announcement, Penumbra's stock surged 17.29% to $353, marking a new 52-week high, while Boston Scientific's shares fell 6.52%, indicating divergent market perceptions of the two companies' futures.
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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 125.74 USD with a low forecast of 112.00 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.
20 Analyst Rating
20 Buy
0 Hold
0 Sell
Strong Buy
Current: 93.790
Low
112.00
Averages
125.74
High
140.00
Current: 93.790
Low
112.00
Averages
125.74
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.
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Boston Scientific Faces Setback; Acquisition of Penumbra Expected to Boost Stock Performance.
- Acquisition Focus: Boston Scientific is heavily focused on acquisitions as part of its growth strategy.
- Stock Impact: The latest acquisition has negatively affected the company's stock in the short term, but it is expected to yield positive results in the future.
- Investor Patience: Investors are encouraged to remain patient as the long-term benefits of the acquisition are anticipated to materialize.
- Future Outlook: Despite current stock challenges, the outlook for Boston Scientific remains optimistic due to its strategic acquisitions.
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