Collins Stewart On Medical Devices & Hospital Supplies

Collins Stewart has published a research report on the Medical Devices and Hospital Supplies sector and reports on its top picks for the group.

In the report, Collins Stewart writes "We believe that FDA approval of Protecta ICD and Revo could provide MDT with an incremental $50 million (1% market share) and $100 million (5% market share) of ICD and pacemaker sales, respectively. As a frame of reference US ICD and pacemaker revenue account for approximately 18% of MDT's total sales. Even with approval of these new products, we would highlight that they would serve more to firm up Medtronic's selling prices, which have been declining significantly due to a lack of new products, rather than be a major catalyst for share gains. As a result, we would not view their eventual approval as reasons to turn less positive on shares of BSX and STJ."

Companies related to this report include:

Boston Scientific Corp. (NYSE: BSX) $6.83 BUY
Medtronic, Inc. (NYSE: MDT) $34.21 NEUTRAL
St. Jude Medical Inc. (NYSE: STJ) $40.47 BUY