On Friday, Wells Fargo shifted its stance on Edwards Lifesciences (NYSE: NYSE:EW), raising the stock rating from Equal Weight to Overweight and increasing the price target to $94 from $75. The upgrade is attributed to the delay in the Neo2 Transcatheter Aortic Valve Replacement (TAVR) device from Boston Scientific (NYSE:BSX) and the earlier-than-anticipated U.S. Food and Drug Administration (FDA) approval of Edwards Lifesciences' Evoque transcatheter tricuspid replacement device.
Edwards Lifesciences announced the FDA approval of its Evoque device today, marking it as the first transcatheter tricuspid device approved in the United States. The approval was particularly noteworthy as it occurred prior to Abbott Laboratories (NYSE:ABT)' TriClip, despite TriClip's pivotal data being presented before Evoque's. The Evoque device was approved without the need for an FDA panel review, while TriClip is scheduled for a panel on February 13, indicating confidence in Evoque's safety profile.
The company's press release highlighted favorable one-year trends in the device group compared to the control group for primary composite endpoints. These include all-cause mortality, tricuspid intervention, heart failure hospitalization, Kansas City Cardiomyopathy Questionnaire (KCCQ) scores, New York Heart Association (NYHA) classification, and six-minute walk distance (6MWD). This stands in contrast to Abbott's TriClip, which did not demonstrate favorable trends on these outcomes at the one-year mark.
Edwards Lifesciences is expected to present the full TRISCEND II pivotal results at the Transcatheter Cardiovascular Therapeutics (TCT) conference in 2024. The early approval of the Evoque device and the positive trends in outcomes have contributed to the analyst's optimistic outlook on the company's stock.
InvestingPro Insights
In light of Wells Fargo's recent upgrade of Edwards Lifesciences (NYSE: EW), InvestingPro metrics and tips offer additional insights that may be valuable for investors considering the stock. With a Market Cap of $51.39B and a high P/E Ratio of 36.12, Edwards Lifesciences is trading at a premium, which is underscored by its elevated Price / Book ratio of 7.76. However, the company's strong Gross Profit Margin of nearly 78% reflects its operational efficiency.
Edwards Lifesciences also boasts a robust 20.11% three-month price total return, indicating a favorable short-term performance that aligns with the analyst's optimistic outlook. InvestingPro Tips highlight that the company's management has been actively buying back shares, which could signal confidence in the company's future. Additionally, Edwards Lifesciences' liquid assets exceed its short-term obligations, suggesting financial stability.
For investors seeking a deeper dive into Edwards Lifesciences' performance and potential, InvestingPro offers additional tips that can be accessed through an InvestingPro+ subscription, now available at a special New Year sale with discounts of up to 50%. Use coupon code SFY24 for an extra 10% off a 2-year subscription, or SFY241 for an extra 10% off a 1-year subscription. With these insights and more, including analyst predictions that the company will be profitable this year, investors can make more informed decisions.
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