Phase Space AI

Boston Scientific

BSX · investment memo

Valuation margin
demonstrated − required CAGR
+6.9%
Required CAGR
0.1%
Demonstrated
0.2%
Terminal margin
22.0%
Exit multiple
16.0x
Company state
A

Risk & exit

Four distinct questions, one field each. A price is not a thesis: the trigger below forces a re-underwrite and freezes further purchases — it is never an automatic sell.

Risk trigger
12% below the memo price
$40.52
Forward E[R]
vs a 0% floor
+23.8%

A daily close below $40.52 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.

Thesis-invalidation conditions

Not stated. This name has no falsifiable invalidation conditions on file, so it cannot be risk-monitored. That is a gap in the research, not a clean bill of health — recorded rather than hidden.

Impairment case

Named cause: PFA share loss compounds into a WATCHMAN air-pocket while tariffs hold gross margin flat. The path: Abbott's US PFA launch scales through 2027 into a four-handed market; US EP growth goes from mid-single-digit to flat; the LAAC guideline change does not arrive, so no NCD expansion, and WATCHMAN US settles at high-single-digit; FY2027 organic lands at 4–5% against the ~8% weighted-average market growth rate BSX claims to beat. At 4.5% organic and no multiple recovery from 3.71x EV/Sales, the equity is ~$40 (−13%); if the multiple compresses to 3.2x EV/Sales on a lost-share narrativ

Documents

BSX Catalyst Calendar BSX Financial Model Notes BSX Research BSX Trade Construction BSX Valuation