UPDATE: Goldman Sachs Downgrades St. Jude Medical to Neutral on Core Business Headwinds

Goldman Sachs reduced its rating on St. Jude Medical

from Buy to Neutral and lowered its price target from $48 to $42. Goldman Sachs commented, "Following weak 3Q2012 results, a reassessment of our model, and recent trends in key end-markets, we downgrade shares of St. Jude Medical (STJ) from Buy to Neutral and lower our price target to $42 (implying 2.8% upside). The company's core business is facing greater headwinds than we had contemplated; while new growth drivers are gaining traction at a slower rate. We no longer see the potential for a material improvement in growth or a positive re-rating in the P/E multiple." St. Jude Medical closed at $40.85 on Wednesday.