Piper Jaffray Cut Price Target On Covidien (COV)

Piper Jaffray cut the price target on Covidien, Ltd. (NYSE: COV) to $52 from $57, but is keeping its Overweight rating after the company hosted an investor day.In the research note, Piper Jaffray writes, "Revenue guidance for FY (Sept) 2011 of 6-9% bracketed the current estimates and should stabilize investor sentiment as a lowered revenue range was anticipated by some. We now expect reported FY11 revenue growth to be 7.7% (was 7.9%). We are reducing our earnings estimate slightly to reflect some pricing and utilization pressure and Fx impact. COV also stated it is now anticipating only half as much dilution from ev3 as was previously forecast ($0.12-$0.15). With P/E multiples in medtech compressing, we are lowering our PT to $52/share."Shares of COV gained 21 cents yesterday to close at $37.90.