Stifel raises Edwards Lifesciences stock to buy, target to $90

Published 30/01/2025, 06:24
Stifel raises Edwards Lifesciences stock to buy, target to $90

On Thursday, Stifel analysts upgraded Edwards Lifesciences (NYSE:EW) stock from Hold to Buy, citing potential growth acceleration in the Transcatheter Aortic Valve Replacement (TAVR) market. The firm also increased its price target on the company from $75.00 to $90.00. According to InvestingPro data, Edwards Lifesciences, with a market capitalization of $41.95 billion, currently trades at an attractive P/E ratio of 10.34, suggesting potential upside based on the company’s Fair Value assessment.

The optimism from Stifel is based on recent conversations with physicians and a survey of thirty doctors, which suggest a more credible growth re-acceleration for TAVR by 2025. Physicians have reported an uptick in referrals for TAVR following the EARLY TAVR trial results. Additionally, an expected label expansion by the FDA for the treatment of asymptomatic severe aortic stenosis is anticipated by mid-2025, which is likely to further drive growth. This growth potential is particularly noteworthy given the company’s impressive revenue growth of 24.02% and industry-leading gross profit margin of 76.6% in the last twelve months.

According to the analysts, even though the official FDA label expansion is pending, physicians are already treating patients ahead of this change, a trend observed with previous positive TAVR datasets. Stifel noted that the stock has been range-bound since the slowdown in TAVR growth post-Covid. However, with the company’s TAVR growth projections now set lower at 5-7% for 2025, the new data and upcoming label expansion are expected to contribute to a re-acceleration of growth.

The firm pointed out that the conversations with physicians are providing a constructive outlook for TAVR’s growth potential. This new perspective has led to the increased confidence in the stock’s performance and the decision to upgrade the rating and price target for Edwards Lifesciences.

Edwards Lifesciences is a global leader in patient-focused medical innovations for structural heart disease and critical care monitoring. The anticipated expansion in the TAVR market could position the company for increased market share and financial growth in the coming years. InvestingPro analysis reveals the company maintains excellent financial health with a "GREAT" overall score, supported by strong balance sheet metrics. For detailed insights and access to the comprehensive Pro Research Report covering Edwards Lifesciences and 1,400+ other stocks, consider an InvestingPro subscription.

In other recent news, Edwards Lifesciences has been the focus of several analyst adjustments. Wolfe Research downgraded the medical technology firm’s stock rating to Underperform, expressing concerns over its growth prospects compared to its peers. Meanwhile, Jefferies maintained a Hold rating on the company’s stock, citing a year-over-year revenue decline of 2.7% for November 2024 in the U.S. TAVR market.

RBC Capital Markets projected a favorable outlook for the Medical (TASE:PMCN) Supplies & Devices sector for 2025, identifying significant upside opportunities in stocks such as Edwards Lifesciences. The firm’s surveys indicate strong potential catalysts and market growth for the company, particularly in transcatheter valve therapies.

BofA Securities upgraded Edwards Lifesciences from a Neutral to a Buy rating and increased the price target to $90 from the previous $82. The firm anticipates a positive trajectory for the company’s stock in 2025, driven by multiple potential catalysts and the strategic importance of its TAVR technology.

Finally, TD Cowen maintained a Hold rating on Edwards Lifesciences’ stock after the company presented a favorable multiyear outlook. The company reiterated its 2024 guidance and introduced its 2025 projections, including a return to double-digit annual revenue growth and sustaining double-digit growth in earnings per share.

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