St. Jude Medical (STJ) Price Target Lifted to $86 at Needham & Company

Needham & Company analyst Mike Matson reiterated a Strong Buy rating and raised his price target on St. Jude Medical (NYSE: STJ) to $86.00 (from $83.00)

Matson commented, "STJ's 1Q15 revenue and EPS beat consensus. Management raised its 2015 constant currency revenue guidance given better than expected 1Q15 growth and progress with its new products. While management lowered its 2015 EPS guidance by $0.03, we note that STJ expects to absorb $0.12 of new EPS headwinds. STJ's CRM business proved resilient as it was able to offset competitive pressures in certain segments with better than expected growth in others. And CardioMEMS grew over 40% sequentially putting STJ on track to exceed its $70M guidance. STJ's underlying revenue growth increased meaningfully which supports our thesis that its revenue growth should accelerate during 2015 driven by CardioMEMS, its new ablation catheters, and new Neuromodulation products. Given this and STJ's discount valuation, we reiterate our Strong Buy rating."

The firm raised raised 2015E and 2016E revenue to $5.513B from $5.484B and to $5.804B from $5.761B, respectively. And we have lowered 2015E and 2016E EPS to $3.94 from $3.95 and to $4.31 from $4.34, respectively.

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 $69.12 yesterday.

You May Also Be Interested In

• AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading
• Hong Kong Exchange (388:HK) (HKXCY) PT Lowered to HK$305 at JPMorgan
• Ciputra Development Tbk (CTRA:IJ) (PTCDF) PT Lowered to IDR1,385 at CLSA