Bank Of America Tweaks Numbers For St. Jude Medical, Inc. Lower On F/X, Portico

In a report published Monday, Bank of America analyst Bob Hopkins reiterated a Buy rating and $80.00 price target on St. Jude Medical, Inc. (NYSE: STJ).

In the report, Bank of America noted, “Given F/X moves since STJ's Q2 call and STJ's guidance that roughly 45-50% of every dollar of revenue impact from F/X falls through to operating income, we estimate that STJ will face a $0.04-$0.06 EPS headwind in the back half of 2014 and a $0.14-0.15 headwind in 2015 if F/X rates remain at current levels. STJ may have offsets such as the repatriation opportunity they have mentioned recently, but given the changes in F/X and given that we are lowering our Portico assumptions to be conservative (STJ will provide a Portico update on the Q3 call), we are lowering our 2014-2016 EPS estimates for STJ to $3.95, $4.28 and $4.65. Consensus models $3.99, $4.32 and $4.69.”

St. Jude Medical, Inc. closed on Friday at $61.82.