Aug 18 (Reuters) - Leerink Swann upgraded Boston Scientific Corp (BSX.N) to “outperform” from “market perform”, and said it expects the cardiovascular device maker’s profitability to improve and progress to accelerate with the new chief executive at the helm.
Shares of Boston Scientific were trading up 2 percent before the bell. They closed at $10.91 Monday on the New York Stock Exchange.
“We believe CEO Ray Elliott’s fresh look at the business and relentless focus on driving profitable sales growth will yield significant operating margin expansion and above-average EPS and cash flow growth,” analyst Rick Wise wrote in a note to clients.
Ray Elliott, former head of the world’s largest maker of orthopedic devices Zimmer Holdings Inc ZMH.N, took the reins of Boston Scientific in July, succeeding James Tobin, who retired. [ID:nN25509229]
Boston Scientific should be able to cover 2011 obligations through re-financing and internal cash generation, resulting in a strengthened balance sheet and increased flexibility for investment or acquisitions, Leerink’s Wise said. (Reporting by Anuradha Ramanathan in Bangalore; Editing by Deepak Kannan)