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Investing.com - Canaccord Genuity has reiterated its Hold rating and $75.00 price target on Edwards Lifesciences (NYSE:EW), according to a research note released this week. The target aligns with InvestingPro’s Fair Value assessment, with analyst targets ranging from $61 to $95.
The firm’s analysis included a survey of TAVR (Transcatheter Aortic Valve Replacement) physicians and discussions with key opinion leaders to assess the impact of recent clinical data and market developments on Edwards’ business outlook.
Canaccord found that the U.S. label expansion for TAVR to include asymptomatic severe aortic stenosis patients would likely only pull forward some procedures by a few months, providing a small incremental benefit over the next few quarters rather than sustained growth.
The research also indicated that Edwards’ PASCAL and EVOQUE products face limitations that could prevent significant upside in the U.S. market, with EVOQUE experiencing workflow issues and PASCAL having a limited label for degenerative mitral regurgitation only.
Despite these constraints, Canaccord expects Edwards to meet its financial guidance, noting that the company can continue to drive earnings per share growth faster than revenue through stock buybacks, while recent acquisitions including Endotronix and the expected purchase of JenaValve could provide opportunities for revenue growth beyond current expectations.
In other recent news, Boston Scientific Corporation (NYSE:BSX) announced the global discontinuation of its ACURATE neo2 and ACURATE Prime valves and halted its pursuit of FDA approval for its TAVR platform. This decision follows the failure of the ACURATE neo2 valve to meet non-inferiority benchmarks in its IDE study and discussions with regulators about the challenging clinical and regulatory requirements. Despite this, JPMorgan has maintained an Overweight rating with a $135 price target on Boston Scientific, noting that the discontinuation is not expected to significantly impact margins due to the business being sub-scale. Meanwhile, Edwards Lifesciences received FDA approval for its SAPIEN 3 TAVR platform for patients with asymptomatic severe aortic stenosis, marking the first such approval for asymptomatic individuals. This approval is based on the EARLY TAVR trial results, which showed better outcomes for patients receiving the TAVR treatment compared to clinical surveillance. Piper Sandler increased its price target for Edwards Lifesciences to $83, citing the potential for the reopening of the TAVR National Coverage Determination as a key growth driver. Additionally, Stifel maintained a Buy rating on Edwards Lifesciences with a $90 price target, following an optimistic outlook from the company’s first-quarter earnings call. These developments highlight significant shifts in the competitive landscape of the aortic valve market.
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