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Investing.com - Piper Sandler raised its price target on Edwards Lifesciences (NYSE:EW) to $90.00 from $83.00 on Wednesday, while maintaining an Overweight rating on the medical device maker’s stock. The company, currently valued at $47 billion, is trading near its 52-week high of $83, according to InvestingPro data.
The price target increase follows Edwards Lifesciences’ strong second-quarter results, which exceeded expectations for both revenue and earnings. The company’s worldwide Transcatheter Aortic Valve Replacement (TAVR) business grew 7.8% year-over-year, excluding foreign exchange impacts, with solid performance in both domestic and international markets. The company maintains impressive profitability metrics, with a gross profit margin of 78.9% and a return on assets of 35.8% over the last twelve months.
Edwards Lifesciences has increased its fiscal year 2025 TAVR growth guidance to 6-7% year-over-year, up from its previous projection of 5-7%. This improvement reflects several tailwinds for the business, including asymptomatic data/approval, improving center capacity, and a competitor’s exit from the European market.
The company’s Transcatheter Mitral and Tricuspid Therapies (TMTT) segment also performed well, growing 57% year-over-year excluding foreign exchange effects. Edwards Lifesciences maintained its previous guidance for this business segment, which Piper Sandler described as "prudent" given the significant increase following first-quarter earnings.
Based on its first-half performance and underlying momentum, Edwards Lifesciences has raised its overall revenue growth guidance to 9-10% year-over-year excluding foreign exchange impacts, up from its previous forecast of 8-10%. This aligns with the company’s recent performance, as InvestingPro data shows revenue growth of 9.5% over the last twelve months.
In other recent news, Edwards Lifesciences reported strong financial results for the second quarter of 2025, with both earnings per share (EPS) and revenue surpassing analysts’ expectations. The company achieved an EPS of $0.67, exceeding the forecast of $0.62, and reported revenue of $1.53 billion, above the anticipated $1.49 billion. Following these results, TD Cowen raised its price target for Edwards Lifesciences to $84, maintaining a Hold rating, citing the company’s strong performance and positive revisions to its full-year guidance. Additionally, RBC Capital increased its price target to $89 from $85, maintaining an Outperform rating due to the company’s impressive growth outlook. RBC noted that Edwards Lifesciences delivered double-digit revenue growth for the first time in over a year. These developments highlight the company’s robust financial health and optimistic future outlook according to analyst firms.
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