UPDATE: Credit Suisse Downgrades St. Jude Medical to Neutral, Lowers PT

In a report published Friday, Credit Suisse downgraded its rating on St. Jude Medical (NYSE: STJ) from Outperform to Neutral, and lowered its price target from $45.00 to $43.00.Credit Suisse noted, “Our downgrade is driven by the RESPECT result and the recent FDA form 483 that could result in a Warning Letter for the CRM division. While we believe that DURATA will be exonerated, beginning with the independent analysis in next month's Product Performance Report, perceived regulatory risk and skepticism regarding the pipeline (given STJ's misplaced focus of the investor base on the trial) will likely offset fading Durata concerns. Upside risk could stem from an optically improving ICD market (due to the lapping of destocking) and/or resurrection of CardioMEMS. There are no changes to our estimates (which did not include any PFO numbers).”St. Jude Medical closed on Thursday at $38.27.