JPMorgan: Time To Buy Edwards Lifesciences

In a report published Tuesday, JP Morgan analysts upgraded the rating on Edwards Lifesciences Corp (NYSE: EW) from Neutral to Overweight, while raising the price target from $147 to $155.Edwards' share price has declined by 15 percent since mid-March due to concerns surrounding a slowdown in market growth and tougher comps. "We believe investors should view the pullback as an opportunity, buying the shares on easing Street concerns and a TAVR market acceleration," the analysts mentioned.The company's "long-term story is more than intact," the analysts said, while adding that it is stronger now than it was a couple of months back, "as our confidence in the conversion of the SAVR market (surgical valve replacement) to TAVR (transcatheter replacement) increased significantly at this year's ACC." Field checks by JP Morgan point towards acceleration in the TAVR market post-ACC and indicate that the company and the markets are poised for an upturn in 2015. Edwards' future performance is expected to be driven by increased TAVR volumes and its ability to bring new growth drivers into the market. "We see pipeline development and balance sheet deployment as potential catalysts as well," the analysts added.The company had $840 million in net cash at the end of 2014 and the analysts expect the company to generate over $2.8B in free cash flow during the next five years.