What Do Analysts Recommend for St. Jude Medical?
St. Jude's Valuation Story: Growth Drivers and Future Trends
Analyst recommendations
As of April 15, 2016, St. Jude Medical (STJ) was trading at $58.68. In a Bloomberg survey of 28 brokerage firms reported on April 15, 2016, 60.7% of the analysts rated the stock a “buy,” and 39.3% rated it a “hold.” None of the analysts gave it a “sell” rating.
The table above lists the 20 brokerage firms that provided a target price for St. Jude Medical for the next 12 months. The company’s consensus 12-month target price is $64.10, amounting to a return potential of ~9.2%.
By comparison, peers Johnson & Johnson (JNJ), Medtronic (MDT), and Edwards Lifesciences (EW) have 12-month return potentials of ~1.9%, 11.5%, and ~-0.5%, respectively.
Analyst estimates
St. Jude reported ~$1.5 billion in revenues for 4Q15. That’s slightly below analyst estimates. EPS (earnings per share) reported for the quarter exceeded analysts’ estimates. A similar trend was observed in St. Jude’s 2015 results. For 4Q15, the company’s adjusted EPS came in at about $1.02, compared to analysts’ estimate of $1.01. For 2015, adjusted EPS was $3.94 compared to analysts’ estimate of $3.93.
The company’s stock price is impacted in case the actual results deviate from analysts’ estimates. In 1Q16, St. Jude expects EPS of $0.87–$0.89. Analysts estimate EPS of $0.89, the higher end of the company’s guidance. According to St. Jude’s estimates, revenues are expected to be flat or marginally higher for 1Q16.
Investors seeking exposure to St. Jude Medical can consider investing in the iShares Russell Mid-Cap Growth ETF (IWP). IWP holds ~0.31% of its total assets in STJ.
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