JP Morgan upgraded St. Jude Medical (STJ) to overweight from neutral.
Analyst Michael Weinstein says St. Jude is his top pick in the Medical Products sector for 2003, and he sees an appreciation potential of 50% or greater in the next 12 months. Weinstein set a $55 year-end 2003 target, which is 26 times his raised $2.10 2004 earnings per share estimate, up from $2.05.
Weinstein views St. Jude as a 2004 growth acceleration story as the company joined in on the rapidly growing cardiac resynchronization market, particularly for high voltage devices, which in 2004 he expects to exceed $1.2 billion. He says every point of the Cardiac Resynchronization Therapy Defibrillators (CRT-D) market share gain in 2004 should translate in $0.015 in incremental earnings per share.
Weinstein also raised his $2.40 2005 earnings per share estimate to $2.50.