UPDATE: Goldman Sachs Raises Target to $40 on St Jude Medical

Goldman Sachs maintains its Neutral rating on St Jude Medical STJ and raises its price target to $40 from $38 on latest quarterly results. Goldman Sachs says, "Following St. Jude Medical's results, we raise 2012-2015E EPS to reflect: (1) higher annual revenue estimates by 0.5%-1.0%; (2) cost controls; and (3) lower financial expense. Our revised numbers put 2012E FX Neutral revenue growth at 3.7% vs. management guidance of +4%-7% FXN. The primary delta appears to be share gain in cardiac rhythm management (CRM, 54% of 2011 sales) and the impact of new product launches. Among these factors, we see the trajectory of new technology development and entrance to emerging therapeutic categories as the key levers influencing long-term revenue growth." STJ closed at $38.56 a share on Wednesday.