UPDATE: Bernstein Research Downgrades St. Jude Medical on Limited Near-Term Catalysts

In a report published Tuesday, Bernstein Research analyst Derrick Sung downgraded the rating on St. Jude Medical (NYSE: STJ) from Outperform to Market Perform, and lowered the price target from $64.00 to $62.00.

In the report, Bernstein Research noted, “We are downgrading St. Jude Medical to Market-Perform and reducing our price target to $62. We continue to view STJ as a strong player in the cardiac rhythm management (CRM) market with a promising pipeline that should support long term growth. However, the stock is up 60% year-to-date and the three primary components of our outperform thesis which have been responsible for the run up – 1) a lifting of the Riata / Durata overhang, 2) a recovery in the ICD markets, and 3) a reincarnation of the CardioMEMS opportunity – have now largely played out. Looking forward to 2014, we see limited catalysts that could result in further multiple expansion sufficient to justify an outperform rating on the stock. As such, we no longer see a compelling valuation opportunity and are choosing to step to the sidelines for the time being.”

St. Jude Medical closed on Monday at $58.89.