Wells Fargo Downgrades St. Jude Medical (STJ) to Market Perform
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Price: $80.82 --0%
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo downgraded St. Jude Medical (NYSE: STJ) from Outperform to Market Perform and cut its price target range from $49-$50 to $25-$36.
The firm comments, "Although we expected the noise level around STJ's Riata/Durata ICD leads to subside, we were clearly wrong. Over the past month or so, the noise level has actually increased culminating in the release of a very concerning FDA 483 inspection letter after the close yesterday (11/20). We think the issues raised in the FDA 483 inspection letter are likely to heighten physicians' concerns about Durata because the letter highlights flaws in the design verification and validation methods for the lead. In addition to the increasing noise around Durata, the RESPECT PFO stroke data at the TCT conference in October was not as favorable as we expected based on the company's commentary on prior earnings calls. The failure to meet the primary endpoint in the RESPECT trial removed an important source of upside potential for the stock in our view."
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 $35.71 yesterday.
The firm comments, "Although we expected the noise level around STJ's Riata/Durata ICD leads to subside, we were clearly wrong. Over the past month or so, the noise level has actually increased culminating in the release of a very concerning FDA 483 inspection letter after the close yesterday (11/20). We think the issues raised in the FDA 483 inspection letter are likely to heighten physicians' concerns about Durata because the letter highlights flaws in the design verification and validation methods for the lead. In addition to the increasing noise around Durata, the RESPECT PFO stroke data at the TCT conference in October was not as favorable as we expected based on the company's commentary on prior earnings calls. The failure to meet the primary endpoint in the RESPECT trial removed an important source of upside potential for the stock in our view."
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 $35.71 yesterday.
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