UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Edwards Lifesciences
In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Edwards Lifesciences Corp. (NYSE: EW), but slightly lowered its price target from $87.00 to $86.00.
J.P. Morgan noted, “We view TAVI as one of the most exciting opportunities in MedTech over the next decade, with WW sales projected to approach $1.7B by 2016. 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 16% EPS CAGR in 2012-16, 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 28x our NTM EPS estimate and 18x 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 Corp. closed on Friday at $86.77.
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