Tuesday, December 21, 2010

St. Jude Medical's (NYSE:STJ) Ablation Catheters a Commodity

Sales of St. Jude Medical's (NYSE:STJ) ablation catheters will probably come under pressure, says Canaccord Genuity, which sees no differentiation with competitor's offerings.

Canaccord said, "We view STJ’s line of ablation catheters as undifferentiated from competitive offerings and believe sales will come under pressure. We currently model STJ AF sales, including catheters and mapping/navigation, of $745M (+7.7% Y/Y) in 2011. Overall we see organic revenue growth decelerating (ex-AGA) from 9% in 2010E to 6% 2011E. However we think STJ could show leverage on modest upside and note that the company has new product launches upcoming."

Canaccord Genuity maintains a "Hold" on St. Jude Medical, which closed Monday at $42.41, down $0.15, or 0.35 percent. Canaccord has a price target of $42 on them.

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