Stocks were higher Tuesday but healthcare exchange traded funds (ETFs) trailed the market as Boston Scientific (NYSE: BSX) slipped 8% after the maker of medical devices announced its chief executive will step down at the end of the year.
Boston Scientific said Ray Elliot will retire in December and that it is looking for a replacement.
“Elliott joined Boston Scientific in 2009 and has led the company’s turnaround efforts,” said Deutsche Bank analysts led by Kristen Stewart in a report. “We were somewhat surprised by the timing of the CEO change as it is happening sooner than we expected. In our view, this adds uncertainty to the investment case and we maintain our hold rating.”
Boston Scientific is a 4.5% holding in iShares Dow Jones US Medical Devices (NYSEArca: IHI). The ETF was lower in midday trade Tuesday.
iShares Dow Jones US Medical Devices
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