Citi Comments On St. Jude Medical Following Investor Meeting

St. Jude Medical's STJ investor day on Friday went into overtime as significant time was spent on pipeline areas outside of core CRM. In Citi's view, the company's long-term pipeline assumptions is very optimistic and harkens back to BSX's 2005 investor day presentation. Management made a significant shift away from its core CRM products, as growth opportunities in this area look limited. Near-term STJ does have room to gain share in ICDs but is likely to lose share in pacemakers. STJ's two catheter-based valve platforms and a renal denervation device are in early stages and likely to have IP issues with leaders Medtronic MDT and Abbot Laboratories ABT. STJ also has several efforts underway in neuromodulation – migraine, Parkinson's and depression – that are also likely to face IP challenges. Of the 3, only Parkinson's represents a near-term opportunity. There are no changes to Citi's model estimates or share price. It still doesn't share management's view of a return to double-digit revenue growth given the challenged markets and debatable pipeline prospects. STJ is trading higher at $43.21