Boston Scientific shares have declined 6.3% over the past four weeks and 8.5% in the last five trading days, pushing key momentum indicators into oversold territory. The relative strength index (RSI) recently dipped below 30, a level historically associated with exhausted selling pressure. Volume on down days exceeded the 50-day average by 25%, suggesting capitulation rather than a fundamental shift. This technical backdrop sets the stage for a potential relief rally if support holds near current levels.

A clear majority of Wall Street analysts have revised Boston Scientific’s earnings forecasts higher in recent weeks. Of 22 brokers covering the stock, 18 have increased full-year 2026 EPS estimates, lifting the consensus by an average of 5%. The most significant upgrades came from three major firms, which raised their outlooks by 7% to 9% on expectations of stronger cardiovascular device sales and synergies from the Penumbra acquisition. Only one analyst lowered estimates, underscoring broad confidence in near-term profitability trends.

In December the company agreed to acquire Penumbra in a $14.5 billion cash-and-stock transaction structured approximately 73% in cash and 27% in equity. Penumbra’s 2025 preliminary revenue grew between 21% and 24%, driven by thrombectomy device demand. Boston Scientific announced the deal is expected to close in 2026, pending regulatory approvals. Management highlighted that the acquisition accelerates entry into high-growth vascular segments and enhances the combined peripheral interventions portfolio.

Boston Scientific’s leadership projects an initial EPS dilution of 6 to 8 cents in the first full year post-close, with dilution moving toward neutral by year two and accretive thereafter. The company plans to realize $200 million in annual cost synergies by 2028, driven by consolidated R&D and supply-chain efficiencies. Integration teams are already collaborating on product cross-selling initiatives, with the goal of $100 million in incremental revenue by year three. Management reaffirmed its 2026 free cash flow guidance range of $3.7 billion to $4.0 billion, reflecting disciplined capital allocation post-closing.