St. Jude Medical, Inc. ($STJ) Cautious Buy or Hold to $68 Confident Investor Rating: Fair
| Company name | St. Jude Medical, Inc. |
| Stock ticker | STJ |
| Live stock price | [stckqut]STJ[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Fair |
| P/E growth | Good |
| EBIT growth | Poor |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $65.79 |
| Target stock price (averages with growth) | $80.45 |
| Target stock price (averages with no growth) | $71.36 |
| Target stock price (manual assumptions) | $67.23 |
The following company description is from Google Finance: http://www.google.com/finance?q=stj
St. Jude Medical, Inc. (St. Jude) develops, manufactures and distributes cardiovascular medical devices. Its principal products in each therapy area are: Cardiac Rhythm Management – tachycardia implantable cardioverter defibrillator systems (ICDs) and bradycardia pacemaker systems (pacemakers); Cardiovascular – vascular products, which include vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories, and structural heart products, which include heart valve replacement and repair products and structural heart defect devices; Atrial Fibrillation – electrophysiology (EP) introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems, and Neuromodulation – neurostimulation products, which include spinal cord and deep brain stimulation devices. In August 2013, St. Jude Medical Inc announced the acquisition of Endosense SA.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in St. Jude Medical, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $67.02
Growth: 0.1
Current EPS (TTM): $2.49
P/E: 27
Future EPS Calc: $4.01
Future Stock Price Calc: $108.27
Target stock price: $67.23
I hope that this makes you a better investor. [/s2If]