Healthcare products maker Covidien plc (
) saw its rating, price target, and earnings estimates all cut on
Tuesday by analysts at Goldman Sachs.
The firm lowered its rating on COV to "Neutral" from "Buy,"
citing small relative upside and lower earnings forecasts. As a
result, Goldman cut its price target for the stock from $55 to $48.
That new target represents a 15% upside to COV's Monday closing
price of $41.81.
The analyst lowered its full-year 2010, 2011, and 2012 EPS
forecasts $3.35, $3.72, and $4.23 to $3.19, $3.48, and $4.02,
Still, Covidien shares rose 22 cents, or +0.5%, in premarket
The Bottom Line
We had removed shares of COV from our recommended list back on
October 6, 2008, when the stock was trading at $52.19. The company
has a 1.72% dividend yield, based on last night's closing stock
price of $41.81. The stock has technical support in the $38-$40
price area. If the shares can firm up, we see overhead resistance
around the $44-$46 price levels. We would remain on the sidelines
Covidien plc (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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