Jefferies Comments On FDA Clearance From Covidien

In a report published by Jefferies, Covidien COV saw FDA Briefing Documents support a positive panel vote and FDA clearance of eV3's PED device.

Jefferies said that PED approval would strengthen COV's positioning in the $1.3B neurovascular market, generating sooner than expected ROIC on last year's eV3 acquisition. “Our new $59 PT blends a $61 P/E-based target, $59 DCF target, and a $58 sum of the parts analysis. Risks include F/X, pricing, utilization, regulatory, and acquisition integration.”

Covidien closed yesterday at $51.09.