J.P. Morgan Overweight On Covidien

J.P. Morgan Chase & Co. has an Overweight rating and a $62 price target on shares of Covidien COV. In a note to investors, J.P. Morgan writes, "Bloomberg reported Tuesday evening that Covidien's Pharma business is for sale, citing sources “with knowledge of the matter.” This idea has been well vetted and should not come as a surprise to investors given (1) management's commentary on the non-core nature of the business in recent public forums; (2) failure to name a new divisional president following Tim Wright's departure in Dec 2010; and (3) challenges across several pharma subsegments over the last 12-24 months. The Bloomberg report indicated that COV's talks with one potential buyer recently broke down, with several companies still shopping the asset. Covidien indicated Tuesday night that it's not going to comment on the Bloomberg report." Shares of COV gained $1.03 yesterday to close at $54.31, a gain of 1.9%.