Investment Analysts’ Weekly Ratings Changes for Edwards Lifesciences (EW)
Several investment firms have updated their stock ratings and price targets on shares of Edwards Lifesciences (NYSE: EW) in the last week:
- Edwards Lifesciences had its price target lowered by analysts at Wunderlich from $104.00 to $98.00. They now have a “hold” rating on the stock.
- Edwards Lifesciences was downgraded by analysts at Citigroup from a “buy” rating to a “neutral” rating. They now have a $95.00 price target on the stock. They wrote, “We rate Edwards Lifesciences (EW) Neutral. The near term ramp in US TAVI will likely take longer to materialize than originally expected despite recent approval of Cohort A, and combined with the macro issues in Europe that continue to add uncertainty to the global TAVI market, we believe visibility on the near-term market opportunity is limited despite believing that the longer-term opportunity remains intact.”
- Edwards Lifesciences had its price target raised by analysts at Goldman Sachs from $107.00 to $109.00. They now have a “buy” rating on the stock. They wrote, “Given the sales shortfall, we were encouraged to see the P&L hold up (EBIT margin +660 bp yoy). These results corroborate the earnings power potential for Edwards given the extent to which Transcatheter Heart Valves (THV) should have a transformative impact on the company’s EPS and returns profile. This is a key component of our long-term bull case on the stock, as we see the company generating multi-year EPS growth in the 25%-30% range for the foreseeable future. Beyond THV, the core surgical valve business (40% of sales) looks to be stabilizing following several quarters of share loss. This trend should continue, as comparisons ease further into 2013. We update our model for changes in discretionary expense assumptions, which results in a 4% increase to 2012E EPS and immaterial changes thereafter. We maintain our Buy rating and continue to see the recent stock dislocation as an especially compelling entry point.”
- Edwards Lifesciences ‘s EPS estimates were cut by analysts at Credit Suisse. They now have a “neutral” rating and a $96.00 price target on the stock.
- Edwards Lifesciences had its “neutral” rating reaffirmed by analysts at JPMorgan Chase. They now have a $87.00 price target on the stock. They wrote, “We view TAVR as one of the most exciting opportunities in MedTech over the next decade, with WW sales projected to approach $1.6B by 2015. Edwards is uniquely positioned to lead the way in this market, in our view. And while questions about the ultimate pace of market expansion persist, we also believe that Edwards has the potential to drive industry leading growth over the next few years as it reaps the benefits of the Sapien US launch. Our model calls for the company to post a 21% EPS CAGR in 2011-2015, making it arguably the most attractive growth story in the industry over the next few years. As a result, despite the fact that EW shares currently trade at 35x our NTM EPS estimate and 23x NTM EBITDA, making it the most expensive stock in our mid- to large-cap coverage universe, we see the risk/reward for the shares as at least balanced at current levels.”
- Edwards Lifesciences was downgraded by analysts at Zacks from a “neutral” rating to an “underperform” rating. They now have a $79.00 price target on the stock. Zacks‘ analyst wrote, “Edwards reported EPS of $0.58 in the third quarter of 2012, surpassing the Zacks Consensus Estimate by $0.02 and the year-ago quarter’s adjusted EPS of $0.38. Sales increased 8.5% to $447.9 million, in line with the preliminary result but lagged the original guidance of $465-$485 million. The disappointing performance was primarily due to lower-than-expected THV sales due to economic uncertainties in Europe, coverage issues for certain inoperable patients in US and later-than-expected approval of Sapien in high-risk patients. Given these headwinds, the company lowered its outlook for 2012. We also prefer to avoid the stock and accordingly downgrade it to Underperform. “
Shares of Edwards Lifesciences traded up 0.85% during mid-day trading on Thursday, hitting $87.57. Edwards Lifesciences has a 52 week low of $61.59 and a 52 week high of $110.79. The company has a market cap of $10.132 billion and a P/E ratio of 38.75.
Edwards Lifesciences Corporation (Edwards Lifesciences) is engaged in the science of heart valves and hemodynamic monitoring.