Edwards Lifesciences (EW) PT Lowered to $80 at Wells Fargo

Wells Fargo analyst Lawrence Biegelsen lowered the price target on Edwards Lifesciences (NYSE: EW) to $80.00 (from $90.00) while maintaining a Overweight rating.

The analyst comments "Model updates. Our model excludes Critical Care starting in 3Q24. We estimate that Critical Care contributed ~$0.40 to our prior 2024 EPS estimate. As such, our Q3 and Q4 EPS estimates are reduced $0.10 per qtr to $0.57 and $0.63, respectively, and after adjusting for ~14.5M shares repurchased. Our 2024 EPS estimate is reduced to $2.56 (from prior $2.76). We reduce 2025 EPS to $2.55 (from $3.04 prior). For 2025, we continue to forecast +9.1% organic core growth (excl. CC) with 78.8% GM and 28.3% OM. See Figure 1 for our earnings bridge. We lower our price target to $80 (from $90), which is based on 27x our 2026 EPS est. At our Healthcare Conference, mgmt indicated it expects 2025 EPS to be markedly lower than in 2024, though core EPS (excl Critical Care) growth will offset deal dilution. Mgmt noted 2025 EPS will be below its prior 2024 EPS guidance of $2.70-2.80 (withdrawn on the Q2 call). We est 2025 EPS could be around $2.55 with the recent 3% headcount reduction helping to offset dilution from the recent deals. EW views 2025 as a transition year from which EPS will grow."

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