UPDATE: Bank of America Raises PT on Edwards Lifesciences Corp. Following Analyst Day
In a report published Tuesday, Bank of America analyst Bob Hopkins reiterated a Neutral rating on Edwards Lifesciences Corp. (NYSE: EW), and raised the price target from $120.00 to $140.00.
In the report, Bank of America noted, “EW’s annual analyst day was held yesterday morning in New York. All product and milestone updates were incrementally positive and 2015 guidance seemed reasonable. Our new 2014-2016 EPS estimates are $3.38, $4.02 and $4.51. Our PO goes to $140 which assumes EW can trade at 30x our 2016 cash EPS estimate. Nearer term margin upside or real progress with Mitral would be needed to justify significant upside above $140 in our view. We do see a number of areas where 2015 guidance could be conservative including buyback guidance (EW assumes buybacks equal FCF but EW has roughly $1.5bln in cash on the balance sheet and every $250mm adds $0.06), guidance on the MDT royalty (EW assumes the low end of the $40-$60mm range despite strength in the mkt) and GMs. Global TAVR guidance of $1-1.1bln assumes global TAVR sales growth 10-20% ex the MDT royalty, which we think is reasonable. EW provided little visibility on long term margins but indicated that leveraging the P&L is a key priority.”
Edwards Lifesciences Corp. closed on Monday at $132.13.
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