Key Takeaways
- A $52 billion fund’s three biggest additions in the second quarter were Boston Scientific, Tango Therapeutics and GRAIL, according to its 13F as of June 30.
- Analysts have cut their average Boston Scientific target by more than half over the past year, while they’ve more than tripled Tango’s and nearly doubled GRAIL’s.
- Tango’s case rests on a small, early-stage pancreatic cancer trial, and its stock fell after its latest data.
- Tango has the most upside to analysts’ average target, and it’s the one the numbers back best.
Boston Scientific (BSX), Tango Therapeutics (TNGX) and GRAIL (GRAL) were the three biggest additions Farallon Capital Management made to its US stocks in the second quarter. That’s according to its 13F for the quarter ended June 30, filed Aug. 14, which is still its latest.
The firm manages $52.08 billion in all, and that 13F held $17.08 billion of US stocks across 82 positions. Since June 30, the three stocks have gone three different ways: GRAIL is up 70%, Boston Scientific is up 4% and Tango is down 18%.
Boston Scientific is cheap for a reason
The fund held 10.52 million Boston Scientific shares at June 30. They were worth $449 million, or 2.6% of its 13F stocks, and that’s 41% more shares than it held three months before.
Boston Scientific has cut its 2026 outlook again and again. In February it guided to sales growth of 10.5% to 11.5%, and now it expects about 4.25%. The latest cut came on Oct. 28, after an August cyberattack, but the business was slowing before the attack. CEO Mike Mahoney said on the third-quarter call, “We believe that 2027 will be the trough in the cycle.”
Over the past year, analysts have cut their average target by more than half:
At $50, the average target is 12% above the last close. The stock trades at about 14x forward earnings, about as low as it’s been in five years. Even at that price, I’d want to see the guidance stop falling before buying.
TIKR tracks 31 analysts on Boston Scientific. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Boston Scientific, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Boston Scientific’s Analyst Ratings
Tango’s data held up better than its stock
The fund owned 12.28 million Tango shares at June 30. They were worth $384 million, or 2.2% of its 13F stocks, after it added 35% more shares in the quarter.
Investors value Tango mostly on vopimetostat, its drug for MTAP-deleted pancreatic cancer, which it tests alongside Revolution Medicines’ daraxonrasib. In June, the pair drew responses in 92% of the first 12 patients with enough follow-up. At the ESMO congress on Oct. 23, with more patients and a later cutoff, the response rate was 82% among 22 previously treated patients, and 88% were alive without their cancer progressing at nine months.
That still sent the stock down 13% that day. My read: investors had expected results closer to June’s 92%. Tango plans to start a registrational Phase 3 trial in front-line patients in the first half of 2027.
Analysts didn’t back off. Their average target hit its high for the year three days after the data:
At $47, the average target is 84% above the last close, though the lowest of the 13 analysts’ targets, $24, is just below the price.
GRAIL already paid off
The fund held 4.16 million GRAIL shares at June 30. They were worth $284 million, or 1.7% of its 13F stocks, and that’s 28% more shares than three months earlier. It’s the smallest of the three additions, and so far the one that’s worked best.
Analysts have followed the stock up. Their average target bottomed at $66 on June 5 and has more than doubled since:
At $139, the average of the 10 analysts covering the stock is 20% above the last close. GRAIL is also 30% below its 52-week high, so it has already given back some of the run.
Tango is the one I’d follow
Of the three, the numbers back Tango best. Its stock has fallen since June 30 while analysts’ average target kept climbing, and that target is 84% above the price, far more room than the other two have.
It’s also the riskiest. Tango has no approved drug, its case rests on 22 patients, and the combination depends on another company’s medicine. Boston Scientific’s low multiple comes with a weak year ahead that management itself expects, and GRAIL’s target leaves less room after its run.
If I could only follow the fund into one of these right now, it’d be Tango. An 82% response rate in previously treated pancreatic cancer is still a remarkable result.
The fund’s next 13F, for the quarter ended Sept. 30, is due by Nov. 16. It’ll show whether the fund kept adding through September, but nothing about how it reacted to Tango’s October data.
So what is Boston Scientific stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
