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Piper Sandler maintains Neutral rating on Edwards Lifesciences shares

Published 10/08/2024, 08:04 PM
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Piper Sandler has maintained a neutral position on shares of Edwards Lifesciences (NYSE: NYSE:EW), with a steady price target of $73.00.

The firm's commentary highlighted the upcoming presentation of the EARLY-TAVR study results on October 28, which will be featured as a late-breaking clinical trial at the Transcatheter Cardiovascular Therapeutics (TCT) conference.

The study examines the benefits of early intervention using Transcatheter Aortic Valve Replacement (TAVR) in patients with asymptomatic aortic stenosis (AS), compared to a strategy of watchful waiting.

The firm anticipates that the EARLY-TAVR trial is likely to achieve its primary composite endpoint, based on previously analyzed data. While there is some uncertainty regarding the demonstration of a mortality benefit, the firm suggests it is more probable that TAVR will show an advantage in this aspect.

Nonetheless, there is ongoing debate regarding the potential market impact of the study's findings, specifically whether it will expand the total addressable market (TAM) or lead to more aggressive treatment of severe AS.

In other recent news, Edwards Lifesciences, a prominent medical technology company, has been the subject of several financial adjustments and projections. The company reported a $95 million revenue beat, achieving total sales of $1.63 billion.

Following the recent sale of the company's Critical Care business to Becton Dickinson (NYSE:BDX) for roughly $4.2 billion, Canaccord Genuity revised its price target for Edwards Lifesciences from $77.00 to $66.00, while maintaining a Hold rating. The firm adjusted its earnings per share (EPS) estimates for the company for 2025 and 2026 by $0.48 each year.

Edwards Lifesciences has also been the focus of several rating changes. Jefferies downgraded the company's stock rating from 'Buy' to 'Hold', citing concerns about the growth prospects for its Transcatheter Aortic Valve Replacement (TAVR) products. Conversely, TD Cowen reaffirmed its Hold rating, influenced by anticipated favorable outcomes from the company's Early TAVR trial.

Furthermore, several firms have adjusted their price targets for Edwards Lifesciences. Truist Securities and Barclays have both reduced their price targets for the company's stock to $71 and $80 respectively. Wells Fargo also lowered its price target for the company's shares from $90 to $80, while Citi reaffirmed its Buy rating with a steady price target of $83.

InvestingPro Insights

As Edwards Lifesciences (NYSE:EW) prepares to present the EARLY-TAVR study results, InvestingPro data provides additional context for investors. The company's market capitalization stands at $38.88 billion, reflecting its significant presence in the medical devices sector. With a P/E ratio of 26.37, Edwards Lifesciences is trading at a premium compared to some peers, which aligns with the market's expectations for growth in the TAVR segment.

InvestingPro Tips highlight that Edwards Lifesciences has been profitable over the last twelve months, with analysts predicting continued profitability this year. This financial stability is crucial as the company awaits the potential market impact of the EARLY-TAVR study. Additionally, the company's liquid assets exceed short-term obligations, indicating a strong financial position to support ongoing research and market expansion efforts.

It's worth noting that while Edwards Lifesciences has shown a high return over the last decade, it does not pay a dividend to shareholders, suggesting a focus on reinvestment for growth—a strategy that may be particularly relevant as the company explores early intervention opportunities in aortic stenosis treatment.

For investors seeking a deeper understanding of Edwards Lifesciences' financial health and growth prospects, InvestingPro offers 10 additional tips, providing a more comprehensive analysis to inform investment decisions in light of upcoming clinical trial results and potential market shifts.

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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