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Goldman Sachs Lowers Rating on St. Jude Medical (STJ)

By Dividend.com,  October 18, 2012, 10:05:42 AM EDT

Goldman Sachs has downgraded medical company, St. Jude Medical, Inc.( STJ ) Thursday to "Neutral."

The firm lowered its rating of the St. Paul, MN company from a "Buy" to "Neutral" and have lowered their price target from $48 to $42. This price suggests a 4.7% increase from the stock's current price of $40, and a 18.3% increase from the stock's YTD price of $34.30.

An analyst from the firm noted, "the company's core business is facing greater headwinds than we had contemplated; while new growth drivers are gaining traction at a slower rate. We no longer see the potential for a material improvement in growth or a positive re-rating in the P/E multiple."

St. Jude Medical shares were down 81 cents, or 1.98% Thursday morning.

The Bottom Line
Shares of St.Jude Medical ( STJ ) have a 2.25% dividend yield, based on last night's closing stock price of $40.85. The stock has technical support in the $36-$38 price area. If the shares can firm up, we see overhead resistance around the $44 price level.

St. Jude Medical, Inc.( STJ )is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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.


This article appears in: Investing, Stocks

Referenced Stocks: STJ



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