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On Thursday, Jefferies analyst Matthew Taylor confirmed a Hold rating on Edwards Lifesciences (NYSE:EW) stock, with a steady price target of $71.00. Taylor’s assessment is based on a proprietary analysis of purchasing data, which indicated that the year-over-year revenue growth rate for Edwards Lifesciences’ U.S. Transcatheter Aortic Valve Replacement (TAVR) in January 2025 was +3.7%, surpassing the consensus estimate for first-quarter U.S. TAVR growth of +3.1%. The analyst noted that this growth rate also reflected a +3.2% increase in unit volumes. For deeper insights into medical device companies’ valuations and growth metrics, InvestingPro offers comprehensive analysis covering over 1,400 healthcare stocks.
Despite the positive growth indicators, Taylor expressed caution due to several factors that could potentially limit the company’s stock upside. These concerns include Edwards Lifesciences’ valuation in the context of structural heart capacity constraints, the risk of pricing pressure in the market, and ambitious revenue goals for the Transcatheter Mitral and Tricuspid Therapies (TMTT) that may be overly optimistic.
In addition to Edwards Lifesciences, Taylor also holds a Hold rating for both Abbott Laboratories (NYSE:ABT) and Medtronic plc (NYSE:MDT). However, the analyst has a more favorable view on Boston Scientific Corporation (NYSE:BSX), for which he issued a Buy rating. According to InvestingPro data, BSX has shown impressive performance with 17.61% revenue growth and a strong analyst consensus rating of 1.5. The company’s market cap stands at $149.26 billion, with a notable year-to-date return of 17.23%.
Taylor’s comments suggest a cautious outlook for Edwards Lifesciences, balancing the company’s recent growth in TAVR revenues against potential challenges in the market. The Hold rating and $71.00 price target reflect a continuation of Jefferies’ existing stance on the stock, without any change following the recent analysis. For comprehensive financial analysis and detailed valuation metrics of medical device companies, explore the full range of tools and insights available on InvestingPro, including exclusive ProTips and detailed financial health scores.
In other recent news, Boston Scientific Corporation has reported significant financial achievements and strategic developments. The company saw its revenue grow by 17.6% in 2024, reaching $16.7 billion, surpassing its initial guidance and analyst expectations. This growth was largely driven by successful product launches, including Farapulse and Watchman devices, and was further supported by strategic acquisitions. Boston Scientific’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are projected to improve, with expectations of reaching around 28%.
S&P Global and Fitch Ratings have both upgraded Boston Scientific’s credit rating to ’A-’, citing strong performance and robust cash flow generation. These upgrades reflect confidence in the company’s operational performance and its conservative financial policy. Analysts at Stifel and RBC Capital have also raised their price targets for Boston Scientific, highlighting the company’s strong growth prospects and strategic positioning.
Boston Scientific continues to focus on innovation, with a commitment to higher-than-industry-average research and development spending and active acquisitions. The company has announced that Charles J. Dockendorff will not seek re-election to its Board of Directors, with the board evaluating its composition following his departure. Overall, these developments underscore Boston Scientific’s strong market position and its continued focus on growth and innovation.
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