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On Thursday, Piper Sandler analysts showed a renewed confidence in Edwards Lifesciences (NYSE:EW), upgrading the stock from Neutral to Overweight and raising the price target to $80.00 from $73.00. The upgrade reflects the analysts’ optimism about the company’s growth prospects, particularly highlighting a quicker anticipated return to double-digit growth by fiscal year 2026, a year earlier than previously forecasted. Currently trading at $70.46, the company’s stock appears fairly valued according to InvestingPro analysis, with a market capitalization of $41.27 billion.
The analysts’ positive outlook is based on the strong performance of the company’s Transcatheter Aortic Valve Replacement (TAVR) business, as evidenced by the first quarter earnings per share and recent checks with doctors. Additionally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) business is surpassing expectations, which further contributes to the encouraging forecast. The company maintains an impressive gross profit margin of 79.46% and has demonstrated solid revenue growth of 8.57% over the last twelve months.
Edwards Lifesciences is also favored for its strategic positioning in a challenging macroeconomic environment. The company is expected to face manageable impacts from tariffs, and its focus on non-deferrable procedures and lack of capital expenditure exposure adds to its resilience. These factors, combined with several potential catalysts anticipated over the next 12 to 24 months, suggest a favorable risk-reward balance for the company’s stock at current levels.
While acknowledging that the decision to upgrade might be somewhat premature, Piper Sandler analysts were compelled by the comprehensive due diligence and the company’s performance in the first quarter. The analysts believe that these factors are significant and too substantial to disregard, leading to their decision to upgrade the stock rating and price target for Edwards Lifesciences.
In other recent news, Edwards Lifesciences reported a positive first quarter for 2025, surpassing earnings expectations. The company’s earnings per share (EPS) reached $0.64, exceeding analysts’ forecast of $0.60, while revenue totaled $1.41 billion, slightly above the anticipated $1.4 billion. Edwards Lifesciences also raised its 2025 sales guidance to a range of $5.7 billion to $6.1 billion, reflecting confidence in ongoing growth. The company noted strong sales in its Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) segments, which contributed significantly to the positive results. Additionally, the company maintained its full-year EPS guidance of $2.40 to $2.50. Notably, the firm has plans to mitigate potential financial impacts from tariffs and the anticipated midyear close of the Yenavalve acquisition. Analysts from Wells Fargo (NYSE:WFC) and Goldman Sachs inquired about strategic initiatives, highlighting the company’s continued focus on market expansion and product innovation. Edwards Lifesciences’ recent developments underscore its commitment to driving growth through strategic investments and innovation in cardiovascular solutions.
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