Market Outperform -- Price 33.40 on Oct. 7
by JMP Securities

The stock will likely trade sideways near-term, pending more visibility on reasons for the [3Q earnings] miss... . We are lowering our "09 sales and EPS estimates from $4.78 billion and $2.53 to $4.72 billion (+8% year/over/year) and $2.44 (+10.5%) ... the shares are trading at 12 times our lowered "10 EPS estimate. Our new 44 target [lowered from 48] is driven by [discounted cash flow] and implies 15.5 times to 16 times "10 EPS. At current levels, we believe the shares are embedding 7% [earnings before interest and taxes] growth over the next five years versus our 10% estimate. Market cap: $11.7 billion.

ST. Jude (STJ) is benefiting from an aging population's growing demand for pacemakers, other implantable cardiac devices and heart valves, Frels says. Adds co-manager Henneman, "St. Jude has proven very adept at successfully delivering effective and safe products to market. The company has been particularly strong in cardiac-rhythm management.

And some heart assists, like St. Jude (STJ), which have been doing excellently, are getting killed. Drug stocks -- no one thinks they can get through unscathed now.

Cramer said so

Hold - Price 32.23 on Dec. 23
by Jefferies & Co.
STJ has announced the acquisitions of Radi Medical and MediGuide for a combined $550 million. Both represent strategic pursuits of growth outside the core CRM [cardiac-rhythm management] business...and are projected to be neutral to '09 EPS expectations [but] Radi [should] be accretive to '10 earnings. We haven't changed estimates...2009 EPS guidance is $2.47 to $2.52. Our 34 target [reflects] a price/earnings approach (13 times our 2009E-EPS)....Risks include continued share gains in the CRM market and...recall of a competitor's product. Market cap: $11.2 billion.

St. Jude Medical (STJ) upgraded to overweight from neutral at JPMorgan. Note earnings visibility, lack of exposure to financial crisis, and attractive valuation below long-term growth rate.

a PE of 22, and a PEG of 1.20

solid stock, recommended by many advisors

Cramer pick,

health care devices undervalued action alerts

good equipment-