Shares in Boston Scientific ( BSX ) rose for the first time since the medical device maker said it was expanding its stent recall last Friday.

Shares in the Massachusetts-based company rose 75 cents, or 2.2%, to $35.45 in heavy trading again. Some 7.5 million shares changed hands, about 2 million more than the daily average. Shares closed at $40.49 last Thursday before the disclosure Friday, which came after a near day-long trading halt.

In a Web cast with doctors Tuesday, the company said that it had completed its recall of Taxus stents, a heart device used to keep arteries open and unclogged after a balloon angioplasty procedure, and had begun restocking hospitals with new units. Several hospitals have stopped using the stents.

Trouble first emerged on July 2 when Boston Scientific recalled 200 stents and said manufacturing defect affected two production lots. After closer inspection, the company found the issue was more widespread. The stents have been linked to three deaths and more than 40 serious injuries. Boston Scientific delayed its second-quarter earnings release -- originally scheduled for July 19 -- by a week, so it could rework sales figures and factor in charges related to the expanded recall.

Prudential Equity Group yesterday downgraded the company to neutral from overweight, dropped its price target to $40 from $53,and lowering earnings estimates going forward, telling investors the recall gaffe will likely cost it market share in the lucrative stent market. Prudential is just one of many brokerages that have lowered price targets since the stent recall first broke. (Prudential does not have an investment banking business and Faulkner does not own shares of the company.)

The bad news on Taxus is a grave disappointment for Boston Scientific, which was already beginning to dominate the market after only four months. Rival Johnson & Johnson ( JNJ), which makes the Cypher stent, was the first to win U.S. regulatory approval for a drug-coated version of stents. Both Guidant ( GDT) and Medtronic ( MDT) are working on stents that could hit the market in the coming years.

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