Boston Scientific (NYSE:BSX) is getting a nice boost as shares of the company are up over 6 percent after an upgrade from RBC’s analyst Glenn Novarro.
Novarro said he believes the company will outperform the overall sector in 2011, citing momentum from its new Promus Element stent and expanding margins.
Novarro wrote in a note to clients, “With shares down 5% year-to-date (significantly underperforming its med-tech peers) and sentiment low, the risk/reward is favorable. Management has set the bar low for 2011, and we see strong new product momentum and margin expansion in 2012-2015, led by the U.S. launch of Promus Element.”
What could scuttle the upgrade, according to Novarro, is if the upcoming trial for Promus Element were to fail, although he said it should come out positive.
Boston Scientific was trading at $7.60, gaining $0.44, or 6.15 percent, as of 1:37 PM EST.
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