Edwards Lifesciences price target lowered to $85 by Stifel on TAVR data concerns

Investing.com - Stifel has reduced its price target on Edwards Lifesciences (NYSE:EW) to $85.00 from $95.00 while maintaining a Buy rating ahead of upcoming clinical data. Currently trading at $74.41, the stock shows promising potential according to InvestingPro data, with analyst targets ranging from $72 to $101 and a consensus recommendation of 2.15 (Buy).

The price target adjustment comes as Edwards Lifesciences shares face pressure due to concerns surrounding the upcoming Partner 3 seven-year low-risk dataset, scheduled for release on October 27 at the TCT 2025 medical meeting. With a robust gross profit margin of 78.87% and an overall "GOOD" financial health rating from InvestingPro, the company maintains strong fundamentals despite market uncertainties. InvestingPro subscribers can access 11 additional exclusive tips and comprehensive analysis for this healthcare leader.

Stifel’s analysis follows extensive conversations with twelve physicians central to the Transcatheter Aortic Valve Replacement (TAVR) community, including thought leaders, cardiac surgeons performing both TAVR and surgical procedures, and high-volume interventional cardiologists. The $43.69 billion market cap company has demonstrated solid revenue growth of 9.14% over the last twelve months.

The firm’s research specifically addressed concerns that emerged in 2023 when five-year mortality data showed crossing lines between TAVR and surgical aortic valve replacement (SAVR), though TAVR remained non-inferior to and numerically better than surgery at that timepoint.

The upcoming seven-year data has gained heightened attention after unpublished six-year data reported by the FDA showed an increased gap between TAVR and surgical mortality outcomes, raising questions about potential clinical and utilization implications.

In other recent news, Edwards Lifesciences announced a $500 million accelerated share repurchase agreement, which will be funded using the company’s existing cash reserves. Under this agreement, Edwards will initially receive approximately 5 million shares, with the final number determined by the volume-weighted average share price during the agreement’s term. Moody’s Ratings has affirmed Edwards Lifesciences’ Baa2 ratings while revising the outlook to positive from stable, reflecting expectations of continued leadership in medical devices for structural heart diseases. BTIG upgraded Edwards Lifesciences from Neutral to Buy, citing improving stability in the company’s Transcatheter Aortic Valve Replacement segment, which is projected to grow 6-7% year-over-year in 2025. Additionally, Leerink Partners raised Edwards Lifesciences’ stock price target to $85.00, following the company’s announcement of its accelerated share repurchase program. In other developments, Pulnovo Medical appointed Francis Duhay, a former executive at Edwards Lifesciences, as its Global Chief Medical Officer. Duhay brings over 25 years of experience in clinical medicine and medical device innovation. These recent developments highlight the dynamic changes and strategic decisions impacting Edwards Lifesciences.

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