Morgan Keegan Has Outperform Rating On Covidien PLC (COV)

Morgan Keegan has an Outperform rating and a $57 price target on shares of Covidien PLC (NYSE: COV).

In a note to clients, Morgan Keegan writes, "The FDA posted briefing documents related to the March 18 Neurological Devices Advisory Panel for Covidien's Pipeline Embolization Device (PED). We have reviewed the briefing material and panel questions and believe that the clinical data support a marketing clearance for the PED. The PED is used for the endovascular treatment of wide-neck or giant intracranial aneurysms in the internal carotid artery. We view the PED as a unique and exciting product with a meaningful growth potential. Although FDA clearance for the PED would be a positive for Covidien, the impact to the share price could be modest. There are no changes to our estimates, Outperform rating, and $57 price target."

Shares of COV lost 66 cents yesterday to close at $50.43, a loss of 1.3%.