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
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
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 .
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