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Wells Fargo Downgrades Edwards Lifesciences (EW) to Market Perform; Near-Term Uncertainty And Valuation

February 3, 2012 7:09 AM EST
EW Hot Sheet
Rating Summary:
    12 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wells Fargo downgraded Edwards Lifesciences (NYSE: EW) from Outperform to Market Perform, price target range $81-83 from $91-93.

Wells analyst says, "While we remain bullish on the long-term potential of transcatheter aortic valve implants (TAVI) and we expect EW to maintain its leadership position in this attractive space, we are downgrading our rating on EW mainly due to (1) near-term uncertainty in the uptake of EW’s Sapien in the U.S. (2) poor visibility on Sapien sales outside the U.S. (OUS); and (3) valuation. We reduced our OUS TAVI estimates due to a sharp deceleration in OUS Sapien growth in Q4 2011, which results in a revised valuation range of $81-83...We are lowering our 2012 sales estimate by $48MM to $1,946MM."

For an analyst ratings summary and ratings history on Edwards Lifesciences click here. For more ratings news on Edwards Lifesciences click here.

Shares of Edwards Lifesciences closed at $80.67 yesterday, with a 52 week range of $61.59-$91.82.


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