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Tuesday, Stifel analysts reiterated a Buy rating and a $90.00 price target for Edwards Lifesciences stock (NYSE: NYSE:EW), following a survey of U.S. physicians that perform Transcatheter Aortic Valve Replacement (TAVR) procedures. According to InvestingPro data, the company, currently trading at $70.27, appears fairly valued based on its proprietary Fair Value model. The stock has shown relatively low volatility, with a beta of 1.15. The survey, which included 41 physicians, aimed to assess TAVR growth in the first quarter of 2025, the overall outlook for TAVR beyond 2025, and the impact of EARLY TAVR on patient referral trends and procedure volumes.
The survey results indicated an approximately 11% year-over-year TAVR volume growth in the first quarter of 2025, with expectations of high-single-digit TAVR growth in 2025 and 2026. This growth outpaces Stifel’s current model, which projects 3.5% U.S. TAVR growth and 4.9% worldwide TAVR growth for the first quarter of 2025. The company’s strong financial position, with a gross profit margin of 79.46% and revenue growth of 8.57% in the last twelve months, supports its expansion potential. InvestingPro analysis reveals 8 additional key insights about Edwards Lifesciences’ growth prospects. Notably, half of the physicians surveyed reported that referrals driven by EARLY TAVR contributed to incremental growth in the first quarter of 2025.
Physicians also addressed investor concerns regarding the overall Total (EPA:TTEF) Addressable Market (TAM) expansion potential driven by EARLY TAVR, the impact of staffing shortages on TAVR procedures, and the upcoming low-risk PARTNER 3 TAVR data from Edwards. The anticipated seven-year PARTNER 3 TAVR data is expected to be presented at the TCT 2025 conference, scheduled for October 25-28, 2025.
The analysts at Stifel expressed optimism regarding the growth re-acceleration of TAVR, driven by positive ongoing clinical datasets and anticipated FDA label indication expansion. They highlighted that the survey provides credible data supporting the notion that EARLY TAVR is already fostering incremental TAVR procedure growth and suggested potential for 2025 TAVR growth to exceed the current guidance of 5-7%.
In conclusion, the survey findings reinforce Stifel’s positive stance on Edwards Lifesciences, with expectations of TAVR procedure growth acceleration, especially as EARLY TAVR is expected to receive FDA label approval around mid-2025. The company maintains a strong financial health score of "GOOD" according to InvestingPro, with a current ratio of 4.18 indicating robust liquidity. Discover comprehensive analysis and 10 additional ProTips by accessing the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Edwards Lifesciences reported strong financial results for the fourth quarter of 2024, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.59, exceeding the forecast of $0.55. The company’s revenue also exceeded projections, reaching $1.39 billion compared to the anticipated $1.36 billion, marking a 9.4% year-over-year increase. This growth was attributed to slight outperformance across all business lines, with the Transcatheter Aortic Valve Replacement (TAVR) segment generating $1.04 billion in revenue and the Transcatheter Mitral and Tricuspid Therapies (TMTT) division achieving an impressive 85% year-over-year growth. Following these results, Canaccord Genuity raised its price target for Edwards Lifesciences to $71 from $68, maintaining a Hold rating, while Stifel reiterated a Buy rating with a $90 price target, highlighting the company’s growth trajectory. The analysts noted the positive market outlook for Edwards’ EVOQUE transcatheter tricuspid valve replacement system, which is expected to contribute to the company’s growth. Edwards Lifesciences has also reiterated its financial guidance for 2025, projecting total company sales between $5.6 billion and $6.0 billion, with anticipated growth rates for its TAVR and TMTT segments. The company remains optimistic about its future prospects, bolstered by recent product launches and strategic acquisitions.
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