Edwards Lifesciences downgraded at Wells Fargo on growth concerns
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- Edwards Lifesciences (NYSE:EW) trended lower in the pre-market trading Wednesday after Wells Fargo downgraded the MedTech company to Equal Weight from Overweight, citing concerns about its topline growth.
- Transcatheter Aortic Valve Replacement (TAVR) dominates Edwards’ (EW) revenue generation, accounting for ~65% of its net sales in 2022, while Transcatheter Mitral and Tricuspid Therapies added ~2%.
- As reasons for his downgrade, Wells Fargo analyst Larry Biegelsen cites lower tricuspid sales, TAVR share loss, and slow ramp in Pascal transcatheter heart valve repair system.
- Larry also projects a limited upside to TAVR market growth as a key data readout on asymptomatic patients is expected in late 2024.
- The analyst who trims the EW price target to $78 from $97 argues that the multiple still implies a premium to the peers given the company’s higher growth profile.
- Previously, Raymond James and Stifel also downgraded Edwards Lifesciences (EW), citing the growth outlook for the TAVR market.
- Read: Seeking Alpha contributor Horizon Capital issued a Buy rating on the stock in January, arguing that its earnings multiple looks “more reasonable.”