Boston Scientific's (BSX ) July 2 recall of its drug-coated stents has sent shares tumbling 17%. Some analysts call it a buying opportunity. And, they say, little-known Angiotech Pharmaceuticals (ANPI ), a specialty outfit in Vancouver, may be an even better bet.Angiotech, now trading at 17.51, licenses its stent-coating technology to Boston Scientific, and analyst Ashkan Haghighat of BMO Nesbitt Burns is upbeat about its cutting-edge technology. He initiated coverage on Aug. 12 with a 12-month price target of 23. Jayson Bedford at investment outfit Adams Harness calls the company a pioneer in drug-coated medical devices and says the current valuation doesn't account for its deep pipeline of key patents. The stock has a p-e ratio of 23, based on his 2005 earnings estimate of 86 cents. His conservative price target is 20. Another plus: Angiotech holds cash of $3 a share.
Gene Marcial will be back next week.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
By Mara Der Hovanesian