Robust Growth and R&D Focus Solidify Buy Rating for Edwards Lifesciences

J.P. Morgan analyst Robbie Marcus has maintained their bullish stance on EW stock, giving a Buy rating on May 14.

Robbie Marcus has given his Buy rating due to a combination of factors including Edwards Lifesciences’ significant growth opportunities and their strategic focus on research and development (R&D). Marcus highlights the potential in the Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) markets, where Edwards has a strong presence and is poised to benefit from underpenetration and future expansions. The company’s dedication to R&D, particularly within structural heart, is seen as a key driver for its durable competitive advantage over its diversified peers. This focus is expected to support Edwards’ continued double-digit growth, solid earnings, and robust cash flow generation.
Moreover, Marcus points to specific growth drivers, such as the EARLY TAVR program, which aims to improve patient diagnostics, and the potential for the program to streamline the treatment process for asymptomatic patients. This, along with the anticipated approval and launch of products targeting asymptomatic and moderate aortic stenosis patients, paints a picture of accelerating growth for Edwards in the coming years. The company’s strategic R&D investments, particularly in the underpenetrated tricuspid valve market and the upcoming rollout of Evoque, further reinforce Edwards’ position for growth and support the Buy rating. Marcus perceives the company’s methodical approach, including their efforts to secure a permanent code for tricuspid replacement, as indicative of their long-term growth potential and their ability to maintain market leadership.

In another report released on May 14, Deutsche Numis also upgraded the stock to a Buy with a $103.00 price target.

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Edwards Lifesciences (EW) Company Description:

Incorporated in 1958, California-based Edwards Lifesciences Corp. is a medical technology company, which specializes in structural heart disease and critical care and surgical monitoring. It reports in three segments: Transcatheter Aortic Valve Replacements, Transcatheter Mitral and Tricuspid Therapies and Surgical Structural Heart and Critical Care.