UPDATE: Sterne Agee Initiates Coverage On St. Jude Medical

In a report dated July 28, Sterne Agee analyst Gregory Chodaczek initiated coverage on St. Jude Medical STJ with a Neutral rating and a $74 price target.

Chodaczek noted that St. Jude's CardioMEMS may be a "potential breakthrough technology" as it's the only FDA-approved heart failure monitor. However, he said there is uncertainty as to when the company will be impacted by revenue from the product due to a conservative roll-out.

As another possible catalyst, Chodaczek pointed to the anticipated second half 2014 FDA approval of TactiCath, which is used to treat Atrial Fibrillation.

Looking forward, Chodaczek is estimating 2014 and 2015 full-year EPS for St. Jude of $4.00 and $4.29, respectively.