BTIG upgrades Edwards Lifesciences stock to Buy on TAVR segment stability

Investing.com - BTIG upgraded Edwards Lifesciences (NYSE:EW) from Neutral to Buy on Tuesday, setting a price target of $100.00. The medical device maker, currently valued at $46.1 billion, has been showing strong market performance with a 23% return over the past year. According to InvestingPro data, the company maintains a robust gross profit margin of 79% and received a "GOOD" Financial Health Score.

The upgrade comes as BTIG sees improving stability in Edwards Lifesciences’ Transcatheter Aortic Valve Replacement (TAVR) segment, which is now expected to grow 6-7% year-over-year in 2025 on a constant currency basis. This growth projection aligns with the company’s overall revenue growth of 9.5% over the last twelve months. InvestingPro subscribers can access 12 additional key insights about Edwards Lifesciences’ growth prospects and valuation metrics.

BTIG’s survey of 50 U.S. doctors indicates they expect their Sapien TAVR procedure volume to grow at an 8% compound annual growth rate between 2024 and 2026, aligning with Edwards Lifesciences’ management targets of mid-single-digit to high-single-digit growth.

The research firm highlighted several potential catalysts for Edwards Lifesciences, including the asymptomatic TAVR launch and a possible update to the TAVR National Coverage Determination that could enable wider adoption of the procedure.

For the Evoque product line, BTIG noted that users describe a steep learning curve with good clinical outcomes, projecting 33% year-over-year growth in Evoque volumes from 2025 to 2026.

In other recent news, Edwards Lifesciences reported strong second-quarter earnings and revenue results, surpassing analyst expectations. The company achieved a 10.6% organic growth rate, exceeding consensus estimates by 3%, with notable performance across all business segments. This robust financial performance led several analyst firms to adjust their price targets for Edwards Lifesciences. Piper Sandler raised its price target to $90, highlighting strong revenue and earnings, particularly in the Transcatheter Aortic Valve Replacement (TAVR) business, which grew 7.8% year-over-year.

RBC Capital increased its price target to $89, citing the company’s double-digit revenue growth for the first time in over a year and earnings per share that beat estimates by 8%. UBS also raised its price target to $85, noting better-than-expected results in the TAVR and Transcatheter Mitral and Tricuspid Therapies (TMTT) segments. Similarly, TD Cowen adjusted its price target to $84, recognizing the company’s top-line and bottom-line beats and positive revisions to its full-year guidance. Bernstein also increased its price target to $85, maintaining a Market Perform rating. These developments reflect a positive outlook from analysts following Edwards Lifesciences’ recent performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.