Covidien Still a “Top Pick” at JP Morgan; Target Boosted (COV)

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Healthcare products maker Covidien plc ( COV ) on Tuesday received some continued bullish commentary from analysts at JP Morgan.

The firm maintained its "Overweight" rating on COV and lifted its price target from $59 to $64. That new target implies a potential 18% upside to the stock's Monday closing price of $54.25.

A JP Morgan analyst commented, "We're reiterating our Overweight and Top Pick rating on Covidien this morning and raising our December 2012 price target to $64. Organic growth is accelerating (+5.8% in the March quarter) and margins are expanding (GM +110bps YTD, OM +100bps), while the broader industry continues to struggle (1Q organic revenue growth in large-cap MedTech: 3.1%). Covidien is, in short, pulling away from the pack."

Covidien shares were unchanged in premarket trading Tuesday.

The Bottom Line
Shares of Covidien ( COV ) have a 1.66% dividend yield, based on last night's closing stock price of $54.25. The stock has technical support in the $50 price area. The stock is trading near all-time high levels of $57 a share.

Covidien plc ( COV ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: COV

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