St. Jude Upgraded At Credit Suisse On CardioMEMS Outlook

In a report published Thursday, Credit Suisse analysts upgraded the rating on

from Neutral to Outperform, while raising the price target from $74 to $84. St Jude Medical reported its 1Q Sales EPS ahead of consensus and analyst estimates. "Higher GM, lower share count & higher sales offset higher SG&A driving the EPS beat vs. our model," the analysts mentioned. The company also updated its 2015 EPS growth guidance to 4-5 percent CC/$3.92-$3.97 (previously 3-5 percent CC/$3.95-$4.00) on the Spinal Modulation acquisition (-$0.05) & $0.10 in increased currency headwinds offset by overall business strength and contributions from the company's new hedging program. The sales EPS estimate for 2015 has been raised from $5.47 billion to $5.49 billion to reflect the consolidation of Spinal Modulation & higher ICD, CardioMEMS, AF & Neuromodulation estimates. St Jude Medical's growth prospects are expected to be driven by the healthy CardioMEMS run rate and a large untapped market for the same. "There could be meaningful upside to our 2016 CardioMEMS estimates of $144M & consensus of $124M," the analysts stated.