UPDATE: Benchmark Initiates On Covidien On Diversification Based Growth

In a report published Thursday, Benchmark analyst Jan Wald initiated a Buy rating on Covidien

and initiated a price target of $82.00. In the report, Benchmark says "We are initiating coverage of Covidien with a Buy rating and an $82 price target. Covidien differs from many companies in the medical device space by deriving no more than 2% of revenues from any one product, a broad based strategy which has served the company well particularly as it pursues specialties and procedures where its products can be #1 or #2. Diversification comes not only from some 50,000 SKUs but also from an international presence that appears will drive not only revenues but respectable margins. Covidien is entering some markets such as Barrett's Esophagus and lung cancer diagnostics that could become significant enough in the minds of investors to move the stock, which would be a shift for the company from being considered a portfolio company. Upside here is that this will only occur with home runs in these spaces or devastating failures, and of all problems a company could face this is far from the worst." Covidien closed on Wednesday at $66.91.