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TD Cowen has reaffirmed its Buy rating for Edwards Lifesciences (NYSE: NYSE:EW), maintaining a $100.00 price target. The firm's analysis published on Wednesday follows an announcement regarding the Acurate US IDE trial results.
These results are now scheduled to be presented at the American College of Cardiology (ACC) in March 2025, a slight shift from the previous expectation of a second-half of 2024 release, potentially at the Transcatheter Cardiovascular Therapeutics (TCT) conference.
"As announced by BSX today, Acurate's US IDE trial results will be presented at ACC in March 2025. Previously, we thought these data would be released in 2H'24, perhaps at TCT, enabling a US approval and launch in 1H'25. Though we maintain a positive bias on the data, we now expect Acurate's US entry in 2H'25 rather than 1H'25. This modest delay should benefit EW most, followed by MDT and then ABT," TD Cowen's analyst said.
The delay in data release suggests a postponement in the US approval and launch of Acurate, which is now anticipated in the second half of 2025 instead of the first half. Despite this adjustment in the timeline, TD Cowen's outlook remains optimistic about the forthcoming data.
The report noted that Edwards Lifesciences is positioned to benefit the most from this development, with Medtronic (NYSE:MDT) and Abbott Laboratories (NYSE:ABT) also expected to gain, albeit to a lesser extent.
The revised schedule for the Acurate trial results and subsequent product launch has been factored into the ongoing positive assessment of Edwards Lifesciences' market prospects.
Meanwhile, Edwards Lifesciences has made notable strides in its business operations and strategic planning. The company recently announced an agreement to sell its Critical Care business to Becton, Dickinson, and Company for $4.2 billion.
Moreover, Edwards Lifesciences is set to acquire Innovalve Bio Medical, a deal valued at around $300 million, to enhance Edwards Lifesciences' portfolio of therapies, particularly with Innovalve's innovative Innostay TMVR System currently under evaluation.
InvestingPro Insights
In light of TD Cowen's reaffirmed Buy rating for Edwards Lifesciences, a look at the real-time data from InvestingPro provides additional context for investors. With a market capitalization of $52.58 billion and a forward P/E ratio of 32.21, Edwards Lifesciences is trading at a high earnings multiple, indicating investors' high expectations for future earnings growth. The company's revenue has grown by 11.68% over the last twelve months as of Q1 2024, showcasing its ability to expand its financial top line.
The stability of the company is further underlined by its gross profit margin of 76.63%, suggesting a strong ability to control costs and maintain profitability. Moreover, with a robust Return on Assets of 15.34%, Edwards Lifesciences demonstrates efficient management of its assets to generate earnings. These figures are complemented by two InvestingPro Tips that may be particularly relevant for investors considering this stock: Edwards Lifesciences operates with a moderate level of debt and has liquid assets that exceed short-term obligations, positioning it well for financial flexibility.
For those interested in a deeper dive into the company's financial health and future prospects, there are additional InvestingPro Tips available, which can be accessed on the InvestingPro platform. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and explore a comprehensive list of tips that further analyze Edwards Lifesciences' market position.
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