UPDATE: Wedbush Initiates Coverage on St. Jude Medical with Outperform Rating, $57 PT as Durata Controversy Fades

In a report published Friday, Wedbush analyst Tao Levy initiated coverage on St. Jude Medical STJ with an Outperform rating and $57.00 price target. In the report, Wedbush noted, “The controversy surrounding STJ's Durata defibrillator lead has negatively impacted the company's share price and financial results. For now, we believe this overhang will remain, but is beginning to lose some steam, thus enabling investors to refocus on St. Jude's healthy pipeline, such as the Nanostim leadless pacemaker, Amulet LAA, Portico TAVR, and EnligHTN renal denervation system. In addition, its sizeable market share in the rapidly growing AFib, FFR/OCT, and Neuromodulation markets provides a solid foundation from which to offset near-term declines in the CIEDs markets (defibrillator and pacemaker). With STJ shares trading at a discounted valuation (versus its peers and the broader market) despite a robust long-term growth outlook, an exciting pipeline, a healthy balance sheet, and a 2% dividend yield, we view the risk/reward profile as favorable.” St. Jude Medical closed on Thursday at $44.34.