UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Covidien plc

In a report published Monday, Citigroup reiterated its Buy rating on Covidien plc

, and raised its price target from $64.00 to $71.00. Citigroup noted, “While COV's overall market comments were relatively unchanged – there was slightly more positive commentary on the US but slightly worse for Southern Europe – the company feels good about its ability to gain share and continue to grow at higher rates in the EMs. In addition, COV now expects its generic Concerta launch to add over $100MM in sales to F2013 vs. our prior estimate of $60MM. We are upping our F2013 sales forecast by $90MM, to $12.54B (+5.2% organic), but only raising EPS by $0.03 as we: 1) expect COV to spend over half of the upside and 2) are holding a conservative outlook in front of the dilutive spin of the Mallinckrodt business. Our target price moves up to $71 from $64 on a higher peer group valuation and slightly higher relative premium.” Covidien plc closed on Friday at $62.28.