NEW YORK (TheStreet) -- Shares of St. Jude Medical (STJ) were down late Tuesday morning even as the company issued another statement in response to Carson Block's research firm Muddy Waters that it will lose more than half of its revenue because of device recalls.
Last week, Muddy Water revealed it is short the stock, saying that the company's pacemakers and defibrillators are easy targets for hackers.
"The allegations made by Muddy Waters and MedSec are irresponsible, misleading and unnecessarily frightening patients," St. Jude CEO Michael Rousseau said in a statement this morning.
"We want our patients to know that they can feel secure about the cybersecurity protections in place on our devices. This behavior speaks volumes about the profit-seeking motives and integrity of these organizations," he added.
Yesterday, Muddy Waters and MedSec presented a video that demonstrated the Radio Frequency Telemetry Lockout security feature of the company's pacemakers, not a "crash" as they claimed, St. Jude added.
The video also confirms that the device's clinical functions are operating as expected under these conditions, according to the Saint Paul, MN-based company.
"The video clearly shows a security feature, not a flaw. The pacemaker is actually functioning as designed. If attacked, our pacemakers place themselves into a 'safe' mode to ensure the device continues to work, which further proves our commitment to safety and security," CTO Phil Ebeling said in a statement.
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