Covidien 2011 Guidance In-Line With Estimates

Covidien PLC (NYSE: COV) guided sales growth of 6-9%, operating margins of 21-22%, and a tax rate of 20-21%, and as a result, JP Morgan continues to believe that its F2011 EPS estimate of $3.48 is achievable and is open for share repurchase discussion.

EPS estimates for F2010 are currently $3.27, and CY2011E EPS is at $3.62. JP Morgan maintains its Buy rating and $47 price target.

Covidien PLC closed yesterday at $37.90.