Barclays on Medical Supplies & Devices: CRM Disruption Provides Opportunity
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Price: $80.82 --0%
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
3 Buy, 21 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Barclays on Medical Supplies & Devices: CRM Disruption Provides Opportunity
Barclays analyst says, "We are upgrading shares of St. Jude (NYSE: STJ) to OW from EW based on what we think is one of the most robust pipelines and best run companies in medtech and a more compelling valuation following its pullback over the past three months. In conjunction with the upgrade, we are downgrading shares of Medtronic (NYSE: MDT) to EW from OW and shares of Boston Scientific (NYSE: BSX) to UW from EW. We highlight weakness in the three companies' core ICD, Stent, and Spine (for MDT) markets as the key driver for the ratings changes. All three will likely be impacted by lower ICD volumes in the US; however we think STJ will continue to take ICD share and has offsets in its other businesses that will help to shield the company from this risk. While we see long-term value in both MDT and BSX, we think that the macro environment will continue to pressure both companies' growth and keep a lid on their multiples in the near term. Further, we see increased risk with MDT in the coming quarters given its exposure to spine and continue to view BSX as a turnaround story that will take time to turn."
Barclays analyst says, "We are upgrading shares of St. Jude (NYSE: STJ) to OW from EW based on what we think is one of the most robust pipelines and best run companies in medtech and a more compelling valuation following its pullback over the past three months. In conjunction with the upgrade, we are downgrading shares of Medtronic (NYSE: MDT) to EW from OW and shares of Boston Scientific (NYSE: BSX) to UW from EW. We highlight weakness in the three companies' core ICD, Stent, and Spine (for MDT) markets as the key driver for the ratings changes. All three will likely be impacted by lower ICD volumes in the US; however we think STJ will continue to take ICD share and has offsets in its other businesses that will help to shield the company from this risk. While we see long-term value in both MDT and BSX, we think that the macro environment will continue to pressure both companies' growth and keep a lid on their multiples in the near term. Further, we see increased risk with MDT in the coming quarters given its exposure to spine and continue to view BSX as a turnaround story that will take time to turn."
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