BofA Securities Downgrades Edwards Lifesciences (EW) to Neutral
BofA Securities analyst Travis Steed downgraded Edwards Lifesciences (NYSE: EW) from Buy to Neutral with a price target of $75.00 (from $105.00).
The analyst comments "Earlier this year, we upgraded Edwards Lifesciences (EW) to Buy, as we expected double-digit growth to return. Since then, EW has missed two TAVR quarters in a row and last night lowered its 2024 TAVR guide to 5-7% from 8-10%. We no longer see a pathway for EW to achieve sustainable double digit revenue growth even with bullish mitral/tricuspid upside scenarios. We therefore downgrade the stock to Neutral. EW is also absorbing critical care EPS dilution and using about half of the proceeds on four dilutive deals. In our view, stock outperformance may be difficult to achieve without full clarity on 2025 EPS (guide in December) or until investors better understand the long-
term TAVR growth rate (timing unknown). After working through our model, we now estimate $2.65 in 2025E EPS and $3.00 in 2026E EPS. We lower our PO to $75 (vs $105 previously); we lower our multiple to 25x 2026 EPS (35x 2025 EPS prior) as we no longer see double digit revenue growth and we roll our PO to 2026 from 2025 ."
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 $86.95 yesterday.