Boston Scientific Corp.’s $615 million acquisition of Apollo Endosurgery Inc. announced earlier is complementary to the former’s endoscopy franchise, as it leverages its gastroenterologist call point while offering the potential for it to expand into surgical endoscopy and bariatric surgery, Needham analysts aid Tuesday. The deal is expected to have no material impact on Boston Scientific’s 2023 per-share earnings but to boost it after that. Needham analysts led by Mike Matson said they would wait for the deal to close — expected sometime in the first half of 2023 — to update their model. “APEN serves the endoluminal surgery (ELS) market, which BSX estimates is wroth about $800 million and growing in the low- to mid-double digits in the next few years,” said the note. “… We believe that APEN’s portfolio is complementary to BSX’s Endoscopy franchise and should be accretive to its revenue growth profile,” it said. Needham rates Boston Scientific a buy with a $48 price target that implies about 9% upside from its current price. Shares are up about 1% Tuesday and up 4% in the year to date, outperforming the S&P 500 , which has fallen 17%.
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