St. Jude Medical (STJ +3.2%) enjoys lots of positive chatter following Friday's analyst day.
Stifel upgrades shares to Buy from Hold with a $75 price target, touting the company's pipeline that spans several businesses and targets new and existing markets; the firm is convinced STJ is poised to show steadily accelerating sales growth and expanding margins during the next 2-3 years, yielding above consensus top- and-bottom line numbers in the process.
Morgan Stanley says end-market stability and pipeline catalysts into H2 2014 suggest acceleration across the next several quarters; it reiterates an Overweight rating and $75 target.
BofA is out positive too, calling the stock a "best idea" and seeing several potential catalysts through the rest of 2014; the firm tags an $80 target price.
Bernstein downgrades St. Jude Medical (STJ -2.6%) to Market Perform from Outperform.
Analyst Derrick Sung still likes STJ's position in the CRM market, but with the stock up 60% YTD, doesn't see much in the way of multiple expansion going forward.
Specifically, Sung notes that the main components of the outperform thesis ("a lifting of the Riata/Durata overhang, a recovery in the ICD markets, and a reincarnation of the CardioMEMS opportunity") have "played out."
An FDA advisory panel sent a mixed message yesterday about the CardioMEMS Champion HF Pressure Measurement System, sending shares of St. Jude Medical (STJ -2.5%), part owner of CardioMEMS, lower.
Champion HF is an implantable device provides that provides daily pulmonary artery pressure measurements to guide physicians in their treatment of patients with congestive heart failure.
One panel member said it was impossible for the members to tie the daily measurements of the pulmonary artery to a decrease in hospitalizations or other important clinical outcomes; “We couldn’t connect the dots."
St. Jude Medical (STJ +3.4%) rises to an all-time high on heavy volume.
Briefing documents from the FDA regarding an advisory panel meeting for CardioMEMS' Champion Heart Failure Monitoring System seem to suggest the regulator is more likely to approve the device this time around — or at least that's RBC and Leerink's reading. (full briefing documents)
"We think there's a few clauses in the conclusion where the FDA reviewers portray subtle inclinations," RBC's Glenn Novarro says.
Meanwhile, Leerink's Danielle Antalffy is already looking forward to an STJ deal for CardioMEMS: "We estimate [Champion HF] can ultimately contribute an incremental $0.25-$0.50 in EPS." (IBD)
Deutsche Bank (Buy) thinks the approval of St. Jude Medical's (STJ +2.6%) implantable cardioverter and cardiac resynchronization defibrillators is a "good sign," as it may signal that STJ is "making progress" with its efforts to allay concerns tied to an FDA inspection of the company's Sylmar, California manufacturing facility. Wedbush's Tao Levy concurs, noting that the FDA "viewed the safety enhancements of the Ellipse and Assura as important enough to approve despite the warning letter."
St. Jude Medical (STJ +1.1%) is up today after the company reports the first patient implant in a new trial evaluating the company's Aplatzer Cardiac Plug, a device for the prevention of stroke. The trial is designed to determine if the device is safe and effective in preventing thrombus from migrating out of the left atrial appendage in patients with non-valvular atrial fibrillation who have a high risk for stroke.
St. Jude Medical (STJ -3.4%) has been working overtime to convince the Street that its Durata heart device leads are safe, but Cowen doesn't take the bait, downgrading the stock to Market Underperform over concerns that the new heart wire is no different from the ones already taken off the market. The firm cites a "significant risk" of a recall, which would " meaningfully damage" its defibrillator and pacemaker business.
Boston Scientific (BSX +2.5%) hits a 16-month high today after Credit Suisse upped the stock to Outperform, citing a better top-line and improved visibility. On those catalysts, the firm reduces the valuation discount it thinks the stock should trade at versus rivals St. Jude (STJ) and Medtronic (MDT) to 10%. The stock currently trades at around a 20% discount to its peers.
St. Jude Medical (STJ +1.4%) gains on the back of yesterday's $1B buyback announcement and an upgrade to Buy at Mizuho. The firm says that concerns about a Durata recall are overblown, and that any impact on its EPS from market share loss in implanted defibrillators should be "more than offset" by yesterday's buyback announcement.
Boston Scientific (BSX +2.7%) bucks a down tape this morning on an upgrade to Buy at Citigroup. The firm says BSX is positioned to be the biggest winner from St. Jude Medical's (STJ -1%) Durata troubles. Citi expects it will be taken off the market within six months, and the ripple effects are likely to cost STJ around $820M in annual sales. BSX could easily take 41% of that market share, with Medtronic (MDT -0.9%) absorbing around 29%. Citi's upgrade differs widely from comments made on Friday by BofA Merrill, which put the risk of a Durata recall well below 50%.
Shares of St. Jude Medical (STJ +3%) claw back a bit of their 12% pummeling taken on Wednesday following the FDA's release of a report citing serious flaws in STJ's oversight of Durata. BofA Merrill Lynch notes that the report found no new safety issues and the probability of a recall stands well below 50%, which is already priced into the stock. It reiterates a Buy with a potential downside to $24 and an upside peaking around $40.
St. Jude Medical (STJ +2%) says its received European approval for its Portico heart valve replacement device. The approval gives STJ access to a burgeoning market for the devices, and the news gives a much-needed lift to the stock after a string of negative headlines in recent months has driven the stock down near 52-week lows. Since October alone, STJ has shaved nearly 17% off its market cap.
St. Jude Medical (STJ -6%) could receive a warning letter from the FDA about its manufacturing facility in Sylmar, California, where it produces defibrillators and pacemakers and which the FDA is inspecting. The news, which CEO Dan Starks disclosed on an earnings call, is not a surprise given the massive insulation problems St. Jude has had with the wires for its defibrillators.
St. Jude Medical, Inc., develops, manufactures and distributes cardiovascular medical devices for global cardiac rhythm management, cardiovascular, atrial fibrillation therapy areas and neurostimulation medical devices for the management of chronic pain.