Gold prices bounce off 3-week lows; demand likely longer term
On Friday, Stifel analysts reiterated a Buy rating on Edwards Lifesciences stock (NYSE:EW), maintaining a $90.00 price target. According to InvestingPro data, the stock currently trades at $71.19, with analyst targets ranging from $61 to $96.80. The company, valued at $41.9 billion, shows strong financial health with an impressive 79.5% gross profit margin. The firm’s analysts conducted a survey of thirty cardiologists to assess the adoption and future outlook for Edwards’ EVOQUE transcatheter tricuspid valve replacement system (TTVR). The EVOQUE system, which was approved by the FDA and launched in February 2024, is designed to treat tricuspid heart valve regurgitation (TR), a condition that can significantly impact patient quality of life. InvestingPro analysis reveals the company maintains a strong financial position with a current ratio of 4.18 and operates with moderate debt levels, suggesting robust capacity for product development and market expansion.
The survey aimed to gauge the current use of the EVOQUE device and gather cardiologists’ opinions on its potential growth in the coming years. According to the findings, the cardiologists surveyed cited several positive factors that could contribute to the growth of tricuspid procedures in 2025. These include increasing use of the device, improvements in reimbursement policies, and the anticipation of positive clinical data.
The EVOQUE system’s early data has shown that reducing the severity of TR can lead to improved patient outcomes. While it is still in the early stages of adoption, the surveyed cardiologists expressed optimism about the device’s future, suggesting a robust market outlook for tricuspid valve replacement.
The positive feedback from the medical community as highlighted by Stifel’s survey underscores the potential for Edwards Lifesciences’ EVOQUE system to become a significant player in the treatment of tricuspid heart valve regurgitation. The company’s stock rating and price target have been affirmed, reflecting confidence in the product’s ability to perform well in the market.
In other recent news, Edwards Lifesciences reported strong financial results for the fourth quarter of 2024, with revenue reaching $1.39 billion, surpassing the anticipated $1.36 billion. The company also exceeded earnings expectations, posting an adjusted earnings per share (EPS) of $0.59, above the forecasted $0.55. Canaccord Genuity responded to these results by raising the price target for Edwards Lifesciences to $71, while maintaining a Hold rating. Meanwhile, Stifel analysts reiterated a Buy rating with a $90 price target, citing confidence in the company’s growth trajectory, particularly in the Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) divisions.
The TAVR segment generated $1.04 billion in revenue, marking a 5.3% increase year-over-year, while the TMTT division saw an impressive 85% year-over-year growth, achieving $105.1 million in sales. Edwards Lifesciences’ management has indicated that despite a projected TAVR growth below 5% in the first quarter of 2025, the overall outlook for the year remains stable. The company projects total sales between $5.6 billion and $6.0 billion for 2025, with TAVR sales expected to be between $4.1 billion and $4.4 billion, and TMTT sales between $500 million and $530 million.
Edwards Lifesciences also highlighted strategic acquisitions and a focus on structural heart disease as key drivers for future growth. The company reiterated its guidance for 2025, emphasizing robust revenue growth starting in the second quarter, supported by various catalysts in both the TAVR and TMTT segments. Despite these positive developments, Canaccord remains cautious, maintaining a Hold rating due to concerns about TAVR growth rates.
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