On Thursday, Piper Sandler adjusted the price target for shares of Edwards Lifesciences (NYSE:NYSE:EW), a prominent medical equipment manufacturer, lowering it to $73 from the previous target of $88. The firm has maintained a Neutral stance on the company's stock.
This revision follows the announcement of Edwards Lifesciences' second-quarter results, which did not meet the expectations for Transcatheter Aortic Valve Replacement (TAVR) growth set by both the company's management and market analysts.
The company has reduced its full-year 2024 TAVR guidance from the initial forecast of 8-10% growth excluding foreign exchange impacts to a new range of 5-7%. This update came after a slower-than-anticipated start to the year and challenges related to capacity in U.S. catheterization laboratories.
Despite reporting strong performance in the Transcatheter Mitral and Tricuspid Therapies (TMTT) sector and solid outcomes in Critical Care and Surgical Structural Heart divisions, the underwhelming TAVR results have raised concerns among investors.
The stock was indicated to drop by over 15% before the market opened on Friday, as the lackluster TAVR growth and the subsequent reduction in guidance have introduced additional uncertainty regarding the company's prospects for 2025.
Edwards Lifesciences had previously set expectations for over 10% top-line growth excluding the Critical Care business for that year. Following the recent financial report, these targets now appear increasingly ambitious, and market analysts are anticipated to revise their projections downward in the near future.
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