Barclays Reiterates an 'Overweight' on St. Jude Medical (STJ); Quadra Approval + Riata Response = Relief
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Price: $80.82 --0%
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays reiterates an 'Overweight' on St. Jude Medical (NYSE: STJ) price target of $51.00.
Barclays analyst says, "After the close on 11/29/11 STJ announced FDA approval of its Unify Quadra CRT-D and Quartet LV Pacing Lead and will begin providing them to US customers immediately. We view Quadra's approval as the most meaningful near-term catalyst for STJ and believe that it will help gain additional ICD market share in the US. Further, we think that the approval of Quartet will help assuage some investors' concerns that the FDA was holding back Quadra approval due to hidden problems (e.g. lead issues)..."
"At the same time, last night, STJ issued a formal response to concerns around Riata leads in the form of a Dear Doctor letter. The letter updates a 2010 letter, noting several key points which we think help to counter the bear case that issues with STJ's ICD lead insulation could be more widespread. Specifically, we believe that insulation issues are isolated to STJ's older 8F silicone leads and expect that lead abrasion observed in the remaining leads in this population will be manageable. Net-net, we view the pair of announcements as a relief for shares of STJ."
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 $35.69 yesterday.
Barclays analyst says, "After the close on 11/29/11 STJ announced FDA approval of its Unify Quadra CRT-D and Quartet LV Pacing Lead and will begin providing them to US customers immediately. We view Quadra's approval as the most meaningful near-term catalyst for STJ and believe that it will help gain additional ICD market share in the US. Further, we think that the approval of Quartet will help assuage some investors' concerns that the FDA was holding back Quadra approval due to hidden problems (e.g. lead issues)..."
"At the same time, last night, STJ issued a formal response to concerns around Riata leads in the form of a Dear Doctor letter. The letter updates a 2010 letter, noting several key points which we think help to counter the bear case that issues with STJ's ICD lead insulation could be more widespread. Specifically, we believe that insulation issues are isolated to STJ's older 8F silicone leads and expect that lead abrasion observed in the remaining leads in this population will be manageable. Net-net, we view the pair of announcements as a relief for shares of STJ."
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 $35.69 yesterday.
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