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Edwards Lifesciences stock sees Outperform rating from Oppenheimer, growth drivers identified

EditorAhmed Abdulazez Abdulkadir
Published 05/12/2024, 11:52
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On Thursday, Oppenheimer affirmed its Outperform rating and a $90.00 price target for shares of Edwards Lifesciences (NYSE:EW), following the company's 2024 Investor Conference held the day before.

According to InvestingPro data, Edwards Lifesciences currently trades at $74.20 with a market capitalization of $43.8 billion, and maintains an impressive "GREAT" financial health score. The conference unveiled Edwards Lifesciences' financial outlook, projecting revenues for fiscal year 2025 to be between $5.6 billion and $6.0 billion. This forecast aligns closely with Oppenheimer's own expectation of $5.96 billion and the consensus estimate of $5.91 billion.

During the event, Edwards Lifesciences highlighted several key points that are expected to drive growth. With a robust gross margin of 76.6% and strong revenue growth of 24% over the last twelve months according to InvestingPro, the company anticipates that the EARLY-TAVR trial will boost the growth of Transcatheter Aortic Valve Replacement (TAVR) procedures, with FDA approval projected for mid-2025.

Additionally, the company's Transcatheter Mitral and Tricuspid Therapies (TMTT) portfolio is expected to generate sales of approximately $2 billion by 2030, propelled by its suite of mitral and tricuspid repair and replacement products.

Heart failure (HF) treatments were identified as the next major growth driver following the TMTT portfolio's expansion. Edwards Lifesciences is positioning itself to capitalize on the increasing demand for innovative heart failure solutions in the coming years.

In light of the guidance provided at the Investor Conference, Oppenheimer is adjusting its estimates for fiscal year 2025 and introducing projections for fiscal year 2026. The firm anticipates continued double-digit growth in the company's top line and earnings per share beyond 2026. The reaffirmation of the Outperform rating and price target reflects confidence in Edwards Lifesciences' growth trajectory and market position.

InvestingPro analysis suggests the stock is currently slightly undervalued, with additional insights available in the comprehensive Pro Research Report, including 8 more exclusive ProTips and detailed financial metrics.

In other recent news, Edwards Lifesciences has been the focus of several key developments. The company has projected steady growth for 2025, with constant currency sales growth of 8% to 10% and an adjusted earnings per share (EPS) of $2.40 to $2.50. Piper Sandler reaffirmed a Neutral rating on shares of Edwards Lifesciences, while Goldman Sachs (NYSE:GS) maintained a Buy rating with a price target of $80. BofA Securities also kept its Neutral rating and a $75.00 price target.

Moreover, Edwards Lifesciences has reported a 10% increase in third-quarter sales, reaching $1.35 billion, largely driven by their Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) sales. The company's EVOQUE transcatheter tricuspid valve replacement system showed promising results in the TRISCEND II trial.

Edwards Lifesciences has also been recently removed from Citi's 90-Day Upside Catalyst Watch List following the presentation of the EARLY TAVR and TRISCEND II data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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