BSX: JP Morgan Downgrades; STJ, MDT Jump

[Stocks-to-Watch]

Following on news earlier today that Sanford Bernstein’s Derrick Sung warned Boston Scientific (BSX) suspended sales of some defibrillators, JP Morgan’s Michael Weinstein today lowered his rating on the stock from “Overweight” to “Hold,” and cut his price target from $9.50 to $7.

The issue, according to Weinstein, is a pending FDA review of plans to change Boston’s “Cognis” and “Teligen” line of implantable defibrillators. The development caps a slew of bad news at the company, he writes, from a restructuring of the cardiovascular devices division to a “compliance crackdown” in December, that have “led to a deterioration in salesforece morale and several reps indicating … a desire to leave the company.” The key is how long the FDA product hold lasts, writes Weinstein.

St. Jude Medical (STJ) and Medtronic (MDT) will both benefit in the short-term, he writes.

There are rumors, too, that Deutsche Bank’s Tao Levy has downgraded the stock.

Boston shares have recovered some ground and are now down $1.12, or 14.4%, at $6.66 (an ugly number, it’s true). St. Jude shares are up $2.45, or 7%, at $39.95. Medtronic is up $1.70, or 4%, at $45.64.



Original Article Source by Barrons.com