TCW Concentrated Large Cap Growth Fund on Boston Scientific Corporation
Thesis
Boston Scientific shares weakened after quarterly results and CHAMPION-AF data failed to provide the positive catalyst investors had hoped for. U.S. Electrophysiology and WATCHMAN results missed expectations and management lowered 2026 organic sales-growth guidance to 10-11%. TCW nevertheless believes the current valuation may already discount too much weakness relative to the company's long-term earnings-growth profile, although the position remains under review.
“current valuation may have overly discounted the company’s long-term earnings growth profile.”
Key risks
- WATCHMAN's durability and future growth trajectory remain uncertain.
- U.S. Electrophysiology and WATCHMAN missed consensus expectations.
- Management reduced 2026 organic sales-growth guidance.