In a sell-side world where Underperform/Sell ratings are pretty rare, is
a bit of exception, as several analysts have either recommended that
investors sell St. Jude Medical (NYSE:STJ)
or have issued what I'd call “neutral … but we really mean sell” calls.
Many of these analysts believe that St. Jude is going to see serious
share loss in cardiac rhythm management (pacemakers and ICDs) due to
safety problems with the leads, but that just hasn't happened. But with
CRM revenue holding up, they're increasingly turning to worrying about
earnings quality and long-term growth potential.
Although I think St. Jude shares have gotten a little expensive, I
think the bears are going to have to work harder to make their case.
Simply put, while St. Jude isn't even close to the most dynamic name in
med-tech, it's doing better than the bears want to acknowledge. So
although I expect another round of attempts to talk down the
numbers/performance, I still see more opportunities for the company to
do better in the coming years.
Please click below and read more:
http://www.investopedia.com/stock-analysis/071813/where-do-bears-go-next-st-jude-medical-stj-jnj-mdt-bsx-ew.aspx
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