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On Tuesday, Piper Sandler adjusted the price target for Edwards Lifesciences (NYSE:EW) stock, increasing it to $83 from $80, while maintaining an Overweight rating. The firm’s analysts see the potential reopening of the Transcatheter Aortic Valve Replacement (TAVR) National Coverage Determination (NCD) as a key driver, although the exact timing remains uncertain. Currently trading at $74.8, the company has attracted positive attention from analysts, with 14 analysts recently revising their earnings estimates upward according to InvestingPro data.
According to Piper Sandler, the recent FDA approval for the treatment of asymptomatic aortic stenosis (AS) could serve as a strong reason for the Centers for Medicare & Medicaid Services (CMS) to revisit the NCD. Analysts believe that including coverage for asymptomatic AS patients could accelerate adoption by simplifying reimbursement processes for this group.
Moreover, Piper Sandler suggests that a review of the NCD might lead to the elimination of the current volume requirements necessary to initiate new TAVR programs. The analysts anticipate that addressing these requirements could lead to an increase in the number of centers offering TAVR, thereby easing capacity constraints and ultimately boosting procedure volumes. InvestingPro analysis reveals the company maintains a strong financial position with a healthy current ratio of 4.45 and management’s commitment to shareholder value through aggressive share buybacks. For deeper insights into Edwards Lifesciences’ financial health and growth potential, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The TAVR NCD reopening is seen as a potential catalyst for Edwards Lifesciences, with the expectation that broader coverage and increased accessibility will positively impact the company’s growth. Piper Sandler’s revised price target reflects optimism about the company’s prospects in light of these potential regulatory developments. The company’s market capitalization of $43.88 billion and strong financial health score of "GOOD" from InvestingPro underscore its position as a leading player in the medical device sector.
Edwards Lifesciences’ stock price target adjustment follows the firm’s analysis of the evolving regulatory landscape and market dynamics in the medical device sector, particularly concerning advanced cardiovascular treatments.
In other recent news, Edwards Lifesciences reported a strong first quarter for 2025, exceeding expectations with earnings per share of $0.64, above the forecasted $0.60. The company’s revenue also surpassed estimates, reaching $1.41 billion, an 8% increase from the previous year. Edwards Lifesciences has raised its 2025 sales guidance to a range of $5.7 billion to $6.1 billion, reflecting confidence in sustained growth. Additionally, the U.S. Food and Drug Administration approved the company’s SAPIEN 3 transcatheter aortic valve replacement platform for asymptomatic patients with severe aortic stenosis. This approval follows the EARLY TAVR trial results, which demonstrated better outcomes for TAVR-treated patients compared to those under clinical surveillance. Analyst firm Stifel maintained a Buy rating on Edwards Lifesciences, citing optimism about the company’s growth potential, particularly for the TAVR product line. Meanwhile, Piper Sandler upgraded the company’s stock to Overweight, raising the price target to $80, due to strong performance in both the TAVR and Transcatheter Mitral and Tricuspid Therapies businesses. These recent developments highlight Edwards Lifesciences’ strategic positioning and growth prospects in the cardiovascular solutions market.
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