Stock Picks: Google, Kraft, Boston Scientific, Hasbro

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Boston Scientific Corp.: J.P. Morgan analyst Michael Weinstein lowering an investment rating on shares of Boston Scientific Corp. (BSX) to neutral from overweight on Mar. 15.

Boston Scientific shares fell the most in 17 months in New York trading on Mar. 15 after the company halted sales of heart-rhythm devices because of a documentation error with its U.S. regulatory filings. Two changes in manufacturing weren't submitted for approval to the U.S. Food and Drug Administration, Boston Scientific said in a Mar. 15 statement. There's no indication that the manufacturing changes pose any rise to patient safety, the company said.

In a Mar. 15 note, Weinstein said the FDA has put all Boston Scientific implants of its ICD products on hold, pending agency approval of a design change to the Cognis and Teligen line of ICDs. He said the company notified its salesforce on Mar. 14, but provided no indication as to how long the shutdown would last.

Weinstein noted that U.S. ICDs represent 15% of the company's sales, and depending on the duration of FDA action, Boston Scientific will be vulnerable to market share loss and reputation damage amid "an already fragile environment" in its CRM business.

The analyst lowered a year-end price target on Boston Scientific to $7 from $9.50.

Weinstein added that competitors St. Jude Medical Inc. (STJ) and Medtronic Inc. (MDT) will "certainly" benefit in the short term from the Boston Scientific news, but lasting benefits will depend the on duration and the severity of the impact on Boston Scientific's business.

He reiterated overweight ratings on both St. Jude and Medtronic.

Hasbro Inc. Needham & Co. analyst Sean McGowan lowered a rating on shares of Hasbro Inc. (HAS) to buy from strong buy on Mar. 15.

In a note, McGowan said he had raised Hasbro's rating to strong buy on Jan. 12, as he believed shares of the maker of Monopoly and GI Joe offered potential appreciation of over 40% to a price target of $45; since then, the shares have risen 22%, he said.

"We continue to believe the stock will be about $45 a year from now, implying price appreciation of 18% in the next year," McGowan wrote. "We continue to like Hasbro's long-term prospects."

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