Edwards Lifesciences (EW) PT Lowered to $63 at Canaccord Genuity
Canaccord Genuity analyst William Plovanic lowered the price target on Edwards Lifesciences (NYSE: EW) to $63.00 (from $66.00) while maintaining a Hold rating.
The analyst commented: "With lots of moving parts, we’d call EW’s Q3 results relatively in line with our expectations. The company reported Q3 net sales of $1,354.4M (+9% Y/Y adjusted, +10% Y/Y CC), which compared to our $1,370.2M estimate and consensus of $1,356M. Our estimate did not fully eliminate some of the discontinued Surgical and Structural Heart businesses (~$20M per quarter) that EW had exited at the time of the Critical Care sale. In the two areas that matter the most to investors, TAVR and TMTT, EW posted in-line quarters. TAVR revenue of $1,023M (+6% Y/Y, +7% CC) compared to our $1,018M estimate, while TMTT revenue of $91M (+73%) compared to our $88M estimate. The company reiterated the 2024 full-year sales guidance ranges for the total company, TAVR, TMTT, and Surgical. The company did note that it expects TAVR Q4 sales growth to be lower because of hurricane impact and one-time China distributor rebate, though it expects daily TAVR procedure volume to be sequentially higher in Q3. What matters for the stock from here? While the clinical data sets (EARLY TAVR and TRISCEND II) at TCT will certainly be noteworthy, we believe how the company frames 2025 guidance at the December analyst day will likely be of greater consequence. Given the capacity constraints that EW continues to highlight, even if EARLY TAVR shows compelling data, we don’t believe there could be meaningful volume increases in the near term (if capacity has truly been the issue). Further, EW continues to open centers for EVOQUE – clearly there is demand without the full data – so we believe that incremental reimbursement now offered under NTAP likely is more meaningful than clinical data at this point. With 2025 being positioned as a transition year, and TAVR growth still only mid-single digits, we continue to wait for catalysts to reinvigorate growth before getting constructive on the stock. We reiterate our HOLD rating and adjust our PT to $63 from $66."