On Friday, Piper Sandler adjusted its price target on shares of Edwards Lifesciences (NYSE:NYSE:EW), a prominent medical equipment manufacturer, moving the target up to $88 from $85 while retaining a Neutral rating on the stock. This change follows the company's first-quarter earnings report, which surpassed Wall Street's expectations on both revenue and earnings per share.
Edwards Lifesciences also provided an updated financial outlook, adding $150 million to its previous revenue forecast for the fiscal year 2024. However, the company maintained its adjusted earnings per share (EPS) projection for the year. The first-quarter earnings discussion highlighted two main points: the worldwide growth of Transcatheter Aortic Valve Replacement (TAVR) and the performance of the Transcatheter Mitral and Tricuspid Therapies (TMTT), particularly noting the strong quarter for Pascal Mitral Repair (MR).
Despite the TAVR segment's growth figures being slightly below consensus expectations at 6.6% excluding foreign exchange impacts (and 7.7% adjusted for selling days), Edwards Lifesciences mentioned an improvement in TAVR volumes throughout the quarter. The company anticipates an uptick in TAVR growth as the year progresses.
While Piper Sandler acknowledged the significant strides Edwards Lifesciences is making in its TMTT segment, the firm expressed a desire for more confidence in the TAVR franchise's growth trajectory before changing its stance on the stock. Consequently, the firm's position remains neutral, awaiting further evidence of sustained progress.
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