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Edwards Lifesciences Paints A Picture Of A Compelling Future

Edwards Lifesciences Paints A Picture Of A Compelling Future
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Following Edwards Lifesciences Corp (NYSE: EW)'s investor conference, analysts were upbeat about the company's prospects.

Here are the opinions offered by sell-side analysts.

Net-Net Positive

Premised on the better-than-expected 2017 outlook, the outlining of a broader array of options in mitral/tricuspid valves and potential expansion into the asymptomatic aortic stenosis market considered another avenue for growth, BTIG termed the Analyst Day as positive net-net.

BTIG reiterated its Buy rating on the shares of the company, while it has a 12-month price target of $110.

Incrementally Positive Updates; Guidance De-Risked

Barclays thinks the updates were incrementally positive and guidance de-risks near-term numbers. Although the firm expects more excitement about mitral and asymptomatic TAVR as the year progresses, it sees headwinds from Boston Scientific Corporation (NYSE: BSX) entry into the U.S. market. The firm also believes the company is likely to face intermediate risk in late 2017/early 2018.

Analyst Matthew Taylor noted that the lackluster 2017 guidance was not a surprise, although the weak fourth-quarter guidance was a bit of a surprise. However, the company painted a positive picture for TAVR.

Barclays has an Equal-Weight rating and a $100 price target for the shares of the company.

Bullish About Runway Ahead

Canaccord Genuity said it came out of the investor day bullish about the runway ahead of the TAVR franchise specifically and the company overall. The firm thinks the multiple will expand toward a 2 times price-earnings growth, in line with its large-cap peers, as the company executes on palpable operating leverage potential, driven by strong TAVR sales, gross margin expansion and SG&A leverage.

This, according to the firm, portends upside to the conservative 2017 earnings per share guidance. The firm sees tremendous value in transcatheter mitral and tricuspid therapies and material growth potential longer term, although believing that these would take a few years to materially contribute to top and bottom line.

The firm said it would be buyers of Edward Sciences, having a Buy rating and $140 price target for the shares of the company.

Core Holding For Large-Cap MedTech Growth Investors

Based on the profile revealed during the event and the opportunities ahead, JMP Securities said Edward Sciences should be a core holding for large-cap MedTech growth investors. The firm encourages investors to establish or add to positions at current levels.

The firm said it is maintaining its Equal-Weight rating and price target of $130.

At time of writing, Edward Lifesciences were up 1.77 percent at $90.88.

Latest Ratings for BSX

Dec 2017NeedhamUpgradesBuyStrong Buy
Nov 2017BTIG ResearchUpgradesNeutralBuy
Oct 2017BMO CapitalMaintainsOutperform

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