JP Morgan highly recommends the three top medical technology stocks in 2025: Boston Scientific Corporation (BSX.US), Intuitive Surgical, Inc. (ISRG.US), and Insulet Corporation (PODD.US).

In its New Year report, J.P. Morgan selected Boston Scientific Corporation (BSX.US) and Intuitive Surgical, Inc. (ISRG.US) as the top large-cap stocks in the medical technology sector, and reiterated its preference for insulin pump manufacturer Insulet Corporation (PODD.US) in the mid-cap medical technology sector. Analyst Robbie Marcus stated that the medical technology industry is expected to remain highly attractive in 2025, mainly due to potential estimates and historical multiple revisions, as well as strong cash flow expectations. Marcus emphasized that the industry's returns will depend mainly on individual stock performance, making 2025 an important year for stock selection. For Boston Scientific Corporation, Marcus expects the company to continue its strong growth momentum, primarily benefiting from the improvement in profit margins of its cardiac devices and the development of the PFA (Pulse Field Ablation) system and WATCHMAN. He noted that PFA will increase gross margins, while WATCHMAN sales may accelerate, and pricing remains stable, significantly improving the free cash flow conversion rate. Regarding Intuitive Surgical, Inc., Marcus's bullish view is mainly supported by the company's new da Vinci 5 Siasun Robot & Automation surgical system. He believes that with management's full rollout of the system and targeting of existing account upgrades, the company will see greater growth opportunities. Although expectations for da Vinci 5 and the overall business are high, Marcus sees many positive drivers that will drive da Vinci 5 to strong performance again in 2025. For Insulet Corporation, Marcus referred to it as "one of the highest quality brands in the medical technology sector," and expects the company to continue strong revenue growth, margin improvement, and significant free cash flow generation in 2025 and beyond. He pointed out that investors are now more focused on profitability and earnings growth compared to previous years, and Insulet Corporation's performance in these areas is expected to significantly improve and continue to grow at a healthy pace.