Citigroup Reiterates Buy Rating, $64 PT on Covidien Ltd.

In a report published Wednesday, Citigroup reiterated its Buy rating and $64.00 price target on Covidien Ltd.

. Citigroup noted, “We rate Covidien Buy. The company has created strong franchises in general surgery, oximetry/monitoring, ventilation, and peripheral/neurovasculat intervention and has augmented these businesses the past five years via acquisitions. The company is now the third-largest pure play in the med tech space in terms of sales and in the top 10 overall. Covidien's higher-growth businesses also carry higher margins which has created more OM expansion than the peer group and we expect this trend to continue. Covidien also has the unique advantage within our coverage universe of having a domicile outside the United States which means there is no geographic restriction on cash usage.” Covidien Ltd. closed on Monday at $57.74.