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Covidien plc (NYSE:COV)‘s stock had its “overweight” rating restated by equities research analysts at Morgan Stanley in a research note issued to investors on Wednesday. They currently have a $79.00 price target on the stock, up from their previous price target of $75.00. Morgan Stanley’s target price suggests a potential upside of 9.98% from the stock’s previous close.

The analysts wrote, “Several dynamics increase our confidence that the upcoming EPS inflection is sustainable. Heading into F2H14 and FY15, the device tax has anniversaried, investments in emerging markets should come down, FX pressures should fade and restructuring savings should build. Our 10% EPS growth is driven by 4.5% organic sales growth, 30 bps of operating leverage (120 bps of EPS growth), and share repurchases (300 bps of EPS growth). “While repurchases may come in below our model, there is upside to margins as scale in EM and restructuring progress could combine for 60 bps of leverage, and tax liability settlements could lower the tax rate. We are less bullish on sales acceleration and model 4-4.5% organic growth through FY17.”

Shares of Covidien plc (NYSE:COV) traded up 0.88% on Wednesday, hitting $72.46. 197,151 shares of the company’s stock traded hands. Covidien plc has a 52 week low of $53.0496 and a 52 week high of $73.77. The stock has a 50-day moving average of $70.95 and a 200-day moving average of $69.41. The company has a market cap of $32.670 billion and a P/E ratio of 20.55.

Covidien plc (NYSE:COV) last announced its earnings results on Friday, April 25th. The company reported $0.96 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.95 by $0.01. The company had revenue of $2.60 billion for the quarter, compared to the consensus estimate of $2.61 billion. During the same quarter last year, the company posted $1.12 earnings per share. Covidien plc’s revenue was up 2.7% compared to the same quarter last year. On average, analysts predict that Covidien plc will post $3.99 earnings per share for the current fiscal year.

Other equities research analysts have also recently issued reports about the stock. Analysts at Needham & Company LLC raised their price target on shares of Covidien plc from $77.00 to $80.00 in a research note on Friday, May 2nd. Separately, analysts at Citigroup Inc. cut their price target on shares of Covidien plc from $83.00 to $81.00 in a research note on Monday, April 28th. They now have a “buy” rating on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Covidien plc in a research note on Monday, April 28th. They now have a $73.00 price target on the stock. Two analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $77.12.

Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings.

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