Why Credit Suisse Just Upgraded St. Jude Medical

In a report published Monday, Credit Suisse analysts upgraded St Jude Medical, Inc.

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(NYSE: STJ) from Underperform to Neutral. The analysts expect the share price gains witnessed by Medtronic plc (NYSE: MDT) to diminish by mid-2015, while expecting upside to CardioMEMS sales in the long-term."While we expect CardioMEMS sales to be in line with guidance this year we see long-term upside based on our recently published survey. Moreover we expect Atrial Fibrillation & Neuromodulation to gain momentum over the course of the year, leaving around 5% CC sales growth after adjusting for missed selling days," the analysts said.Credit Suisse has also forecasted top-line acceleration for St Jude to close to 3.9 percent in FY15 from 2.0 percent in FY13, on the back of continued traction from FFR & OCT as well as new product launches. In fact, there could be further upside to the estimates in the longer-term if CardioMEMS witnesses stronger-than-anticipated uptake."We currently forecast $77M in 2015 CardioMEMS sales vs. guidance of $70M, but note that the Street's anticipation for 2016 CardioMEMs sales will be determinative for the stock in the 2H of 2015," the analysts added. However, the sales/EPS estimates for FY15 revised down due to worsening foreign exchange rates.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorUpgradesAnalyst RatingsCredit Suisse