UPDATE: Stifel Nicolaus Initiates Covidien at Hold on Pending Spin-Off

Stifel Nicolaus initiated coverage on Covidien

with a Hold rating. Stifel Nicolaus said, "In our view, there is very little one can find in the Covidien story that is not to like. Since the company's spin-off from Tyco five years ago, Covidien has set clear financial and operating goals and delivered on them with accelerating organic growth in its key business lines and significant gross margin expansion. Looking ahead, we think COV is poised for continued growth above its large-cap MedTech peers. However, a reasonable valuation and the potential for incremental pharma spin-off related dilution keep us on the sidelines." Covidien closed at $56.17 on Monday.