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Raymond James Downgrades Edwards Lifesciences (EW) to Market Perform

February 6, 2023 3:53 AM EST
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Price: $95.50 +0.37%

Rating Summary:
    23 Buy, 18 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 10
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(Updated - February 6, 2023 6:04 AM EST)

Raymond James analyst Jayson Bedford downgraded Edwards Lifesciences (NYSE: EW) from Outperform to Market Perform.

The analyst comments "We are downgrading our rating on EW to Market Perform (from Outperform), as we are less confident in the sustainable growth profile. EW’s revenue growth (10% 5-year, 13% 10-year avg.) has separated it from most of its peers and has long supported a premium valuation. Our concern, which has admittedly already weighed on the stock over the last few quarters is that recent TAVR trends continue (in the 7-8% range), which limits upside to estimates, and the multiple. With slowing TAVR growth, and increasing competition, we believe the narrative on the stock becomes more defensive, until U.S. TAVR growth sustainably accelerates or the rich pipeline gets closer to commercialization. While much of this thinking may already be reflected in the stock (and is a risk to our call), EW still trades at 33/29x 2023/24E non-GAAP EPS, which may deter new investment and makes it tougher to stay constructive without confidence that there is much upside to consensus estimates."

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 $82.12 yesterday.


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