EW - Edwards Lifesciences downgraded at Wells Fargo on growth concerns

2023-03-08 08:01:42 ET

• 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.”

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