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NEW YORK (TheStreet) -- Shares of St. Jude Medical (STJ) were continuing to decline Friday morning after Carson Block's research firm Muddy Watersrevealed a short position yesterday.

Muddy Waters believes that the Saint Paul, MN-based medical device company is poised to lose over half of its revenue for a period of at least two years due to device recalls, Block told Bloomberg.

The report asserts that the company's "Merlin@Home" remote monitoring platform is less secure than those used by competitors due to a lack of encryption and authentication, Credit Suisse said in a note received today.

Additionally, hackers were able to gain access to the devices and as a result were able to deplete batteries and cause devices to pace at unsafe levels, the firm added.

"STJ has not provided any detailed commentary on this matter and we expect shares to remain under pressure until it does so," Credit Suisse wrote in an analyst note.

"Given that we have been unable to get STJ's version of the facts and that cybersecurity breaches are not reported in clinical trials/product performance reports we have been unable to assess the risk to STJ at this point," the firm said.

Credit Suisse's initial take is that the breaches described in the report are not likely to serve as the basis for removing St. Jude's products from the U.S. market. There have been no related patient events to date.

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"However, if the FDA believes that more severe or widespread attacks are possible (the report notes the possibility of a multi-patient threat via STJ's network) and that STJ's platform is uniquely vulnerable we could envision significant downside to STJ," the firm noted.

Credit Suisse has a "neutral" rating and $81 price target on shares of St. Jude.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity.

The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: STJ

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