Goldman Sachs Recommends Buying St. Jude Medical (STJ) On Recent Weakness
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Price: $45.44 -0.57%
Rating Summary:
10 Buy, 10 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Rating Summary:
10 Buy, 10 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 21 | New: 29
Trade STJ Now!
Goldman Sachs reiterated their Buy rating and $48 price target on St. Jude Medical (NYSE: STJ) saying the recent sell-off is overdone.
The firm notes that over the last week shares have underperformed the S&P 500 by 1,000 bp and their peer group by 1,150 bp, and are now trading at a discount to both Medtronic, Inc. (NYSE: MDT) and Boston Scientific (NYSE: BSX) on a P/E basis.
The weakness stemmed from an anonymous physician report posted in the FDA’s MAUDE database about an externalized conductor in one of the company’s Durata implantable cardioverter defibrillator (ICD) leads. This reignited fears surrounding not only a Durata recall but also the impact of negative publicity on physicians' willingness to use St. Jude products in the future, the firm notes.
"We think the current stock price reflects 400 bp in annualized US ICD share loss (vs. our estimate of 190 bp of share gains)," a Goldman analyst said.
For an analyst ratings summary and ratings history on St. Jude Medical click here. For more ratings news on St. Jude Medical click here.
Shares of St. Jude Medical closed at $35.55 yesterday, with a 52 week range of $32.13-$49.90.
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The firm notes that over the last week shares have underperformed the S&P 500 by 1,000 bp and their peer group by 1,150 bp, and are now trading at a discount to both Medtronic, Inc. (NYSE: MDT) and Boston Scientific (NYSE: BSX) on a P/E basis.
The weakness stemmed from an anonymous physician report posted in the FDA’s MAUDE database about an externalized conductor in one of the company’s Durata implantable cardioverter defibrillator (ICD) leads. This reignited fears surrounding not only a Durata recall but also the impact of negative publicity on physicians' willingness to use St. Jude products in the future, the firm notes.
"We think the current stock price reflects 400 bp in annualized US ICD share loss (vs. our estimate of 190 bp of share gains)," a Goldman analyst said.
For an analyst ratings summary and ratings history on St. Jude Medical click here. For more ratings news on St. Jude Medical click here.
Shares of St. Jude Medical closed at $35.55 yesterday, with a 52 week range of $32.13-$49.90.
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