EW - Edwards Lifesciences Research Update: Dislocation In Valuation Remains

• Strong Q3 exit with +6.4% growth in TAVR therapy sales, in spite of pressures from COVID-19.
• Shareholders have enjoyed +70% gains since March, however, with high volatility to the downside, which needs to be priced into the valuation.
• The stock has bounced away from support 3 times since March, before migrating back towards the support line to today's trading.
• There is a dislocation between value and market price in our view, and the stock trades at a significant premium to peers, albeit with high ROIC and ROA.
• We are neutral on Edwards Lifesciences and require greater evidence on a valuation front to make the case for immediate entry.

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