On Monday, Piper Sandler reaffirmed a Neutral rating on shares of Edwards Lifesciences (NYSE:EW) with a steady price target of $70.00. The firm anticipates that the company will restate its fiscal year 2024 expectations and introduce initial guidance for fiscal year 2025 during its annual investor day on December 4. The event, set to take place in New York, is expected to include updates on the company's product pipeline and market opportunities.
Edwards Lifesciences is likely to focus on its U.S. Transcatheter Aortic Valve Replacement (TAVR) operations, addressing the recent slowdown in the market, competitive dynamics, and data from the EARLY-TAVR trial.
Attention is also expected to be directed towards the company's Transcatheter Mitral and Tricuspid Therapies (TMTT) program, which is projected to contribute approximately 250 basis points to annual growth in the upcoming years.
Regarding the fiscal year 2025 guidance, Piper Sandler predicts that Edwards Lifesciences might adopt a slightly more cautious stance for the upcoming year's outlook at this investor meeting. The firm suggests that while the company's top-line revenue and adjusted earnings per share (EPS) forecasts are likely to align with consensus estimates, the midpoints might be slightly lower than Wall Street expectations.
Piper Sandler's current stance on Edwards Lifesciences shares is to observe and wait, citing the need for a cautious approach given the company's current valuation. The firm's position reflects an anticipation of forthcoming details that could potentially influence the stock's future performance.
In other recent news, Edwards Lifesciences Corporation (NYSE:EW) and Tandem Diabetes Care (NASDAQ:TNDM), Inc. have seen notable developments. Edwards Lifesciences reported a 10% increase in third-quarter sales, reaching $1.35 billion, largely driven by their Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) sales.
Moreover, their EVOQUE transcatheter tricuspid valve replacement system showed promising results in the TRISCEND II trial. In response to these developments, Goldman Sachs maintained a Buy rating on Edwards Lifesciences with a price target of $80.
Meanwhile, Tandem Diabetes was removed from Citi's 90-Day Downside Catalyst Watch List following a significant stock drop and concerns over the company's third-quarter U.S. revenue guidance. Citi concluded that the current stock levels now reflect a more balanced risk/reward scenario. These are among the recent developments for both Edwards Lifesciences and Tandem Diabetes.
InvestingPro Insights
As Edwards Lifesciences prepares for its annual investor day, InvestingPro data provides additional context to the company's financial position. The company's market capitalization stands at $41.57 billion, reflecting its significant presence in the medical devices industry. With a P/E ratio of 25.11 for the last twelve months as of Q3 2024, Edwards Lifesciences is trading at a premium compared to the broader market, which aligns with Piper Sandler's cautious stance on valuation.
InvestingPro Tips highlight that Edwards Lifesciences holds more cash than debt on its balance sheet, indicating a strong financial position. This could be particularly relevant as the company navigates market challenges and invests in its product pipeline, especially in the TAVR and TMTT segments mentioned in the article.
Another InvestingPro Tip notes that 24 analysts have revised their earnings downwards for the upcoming period. This insight correlates with Piper Sandler's prediction of a potentially cautious outlook for fiscal year 2025, suggesting that the company might indeed present guidance slightly below current Wall Street expectations.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Edwards Lifesciences' financial health and market position.
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