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Kaufman Bros. Starts St. Jude Medical (STJ) at Buy, Strong Pipeline & Strong Growth

September 22, 2011 8:12 AM EDT Send to a Friend
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Price: $66.03 --0%

Rating Summary:
    17 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 15 | New: 4
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Kaufman Bros. initiates coverage on shares of St. Jude Medical (NYSE: STJ) with a Buy rating and $50 price target.

The firm states that STJ is a share gain, even is a slow growth CRM market. The company is first with new technologies in the industry and has a strong pipeline of new technologies.

Management has recently been making manufacturing changes with transferring production to regions with lower costs and better tax advantages. The company will save $40-$50 million annually with the transfer of its CRM manufacturing plant in Sweden to areas such as Puerto Rico, Costa Rica, and Malaysia.

For 2011-2013, the firm forecasts that high-single digit gains will transfer to high-single to low-double digit EPS gains.

An analyst at Kaufman comments, "In the current "show me" environment, particularly as St. Jude Medical is positioning to continue to outperform a weak CRM market, we look to management's execution record and a corporate culture to under promise and over deliver to provide some support."

The firm estimates $5.69 billion in revenue and EPS of $3.28 for 2011 and $6.02 billion in revenue and $3.60 in EPS for 2012.

For more ratings news on St. Jude Medical click here and for the rating history of St. Jude Medical click here.

Shares of St. Jude Medical closed at $41.12 yesterday.




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