UPDATE: JP Morgan Lowers PT on Edwards Lifesciences on Sapien US Launch
JP Morgan analyst Michael Weinstein published a report on Edwards Lifesciences (NYSE: EW) that maintained its Neutral rating and lowered the price target from $88 to $82.
JP Morgan reported that, “We view TAVR 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. While questions about the ultimate pace of market expansion persist, we also believe 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 15% EPS CAGR in 2013-2016, 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 26.6x our NTM EPS estimate and 17.2x 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.”
Shares of Edward Lifesciences closed at $81.92 on Thursday.
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