We look for global demographic trends — aging populations in developed nations and the rapid urbanization of developing countries — to fuel long-term growth of St. Jude Medical (STJ). These trends give rise to growing demand for cardiovascular health care.
However, recent weaknesses in the CRM segment, particularly in the U.S., are headwinds for St. Jude in the near-term. This might force the company to lose market share to its competitors.
Earnings per share in the third quarter reached 59 cents, beating the Zacks Consensus Estimate by a penny. Based on the company’s third quarter results, we upgrade the stock to Neutral with a target price of $38.
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