Gabelli Raising Estimates On Covidien

Gabelli & Co. is out with a research report on Covidien Ltd COV and it has a Buy rating on shares, and is raising earnings estimates. In a note to clients, Gabelli & Co. writes, "We are raising our 2011 and 2012 EPS estimates to $3.90 and $4.25, from $3.80 and $4.20 respectively, as Q4 sales should benefit from strong organic growth, continued FX benefit, and one extra week in the fiscal year. Covidien again demonstrated its substantial momentum in both its core business and recent acquisitions. The company continues to see steady sales growth, substantial operating margin expansion, modest tax savings, and potential capital allocation opportunities." Shares of COV gained $1.83 yesterday to close at $52.08.