The spin-off of pharmaceutical operations should unlock Covidien's value.
by Alex Morozov, CFAAuthors can be reached at Analyst FeedbackMorningstar's Editorial Policies
Adjusted for Noise, Covidien Delivers Strong 4Q; We Reaffirm Our Positive Take on the Firm
by Alex Morozov, CFA, 11-09-12
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Analyst Note 11/09/12
Covidien's COV fiscal fourth-quarter results were pretty much in line with our expectations, and the company affirmed its 2013 revenue and margin outlook, which should position it to meet our expectations of $4.37 in adjusted earnings per share in 2013. The firm remains our top pick in the medical technology industry as we think its strengthening competitive position and excellent growth profile are still underappreciated by the investor community. We maintain our $76 fair value estimate, and the shares continue to trade at an attractive discount to that.