Edwards Lifesciences: A Buy Rating with Strong Growth Prospects and Positive Market Dynamics

In a report released today, Pito Chickering from Deutsche Numis upgraded Edwards Lifesciences (EW – Research Report) to a Buy, with a price target of $103.00.

Pito Chickering has given his Buy rating due to a combination of factors involving Edwards Lifesciences’ market prospects and financial forecasts. His analysis anticipates a significant organic revenue compound annual growth rate (CAGR) of approximately 10% over the next five years, driven by strong growth trends in various product segments such as high-single-digit growth in transcatheter aortic valve replacement (TAVR) and a substantial 46% growth forecast for transcatheter mitral and tricuspid therapies (TMTT). Additionally, moderate single-digit growth is expected for Surgical Valves. The anticipated separation of the Critical Care unit is also seen as a beneficial move that could contribute an additional 50 basis points to the company’s pro forma growth, solidifying Edwards’ position as a leading growth story in the large-cap medical technology sector. This optimistic outlook is reflected in Chickering’s raised price target for Edwards Lifesciences’ shares.

Moreover, Chickering’s report suggests that the stock’s valuation incorporates conservative estimates for the U.S. TAVR market growth, and there is potential for upside should the market outperform these expectations. A key element of Edwards’ growth strategy is the Evoque system, which is expected to generate significant revenue as its market opportunity becomes more apparent to investors through expert consultations and market sizing efforts. The high “misery index” for patients with limited treatment options further underscores the potential demand for such therapies. Furthermore, FDA approval of Evoque without advisory panel review is an uncommon and optimistic sign, increasing confidence in a favorable reimbursement scenario, which would be a major catalyst for broader adoption by hospitals and physicians. This combination of market potential and regulatory milestones informs Chickering’s positive stance on Edwards Lifesciences.

Chickering covers the Healthcare sector, focusing on stocks such as Acadia Healthcare, DaVita, and Universal Health. According to TipRanks, Chickering has an average return of 5.3% and a 55.15% success rate on recommended stocks.

In another report released on May 7, Barclays also maintained a Buy rating on the stock with a $101.00 price target.

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Edwards Lifesciences (EW) Company Description:

Incorporated in 1958, California-based Edwards Lifesciences Corp. is a medical technology company, which specializes in structural heart disease and critical care and surgical monitoring. It reports in three segments: Transcatheter Aortic Valve Replacements, Transcatheter Mitral and Tricuspid Therapies and Surgical Structural Heart and Critical Care.