On Monday, TD Cowen maintained its Hold rating on Edwards Lifesciences (NYSE:) with a steady price target of $70.00. The firm’s focus is on the potential label expansion of Evoque following the upcoming presentation of the Triscend II trial results. The full cohort of the study is set to be revealed as a late-breaking session at the Transcatheter Cardiovascular Therapeutics (TCT) conference in 2024.
The analyst from TD Cowen highlighted the significance of the forthcoming data, suggesting that it could substantiate a mortality benefit for Evoque, which would be a notable enhancement to its current label. The preliminary results of the Triscend II trial, which were shared at the previous year’s TCT, had already hinted at promising outcomes.
The anticipation around the full data readout is high, as it is expected to further drive the momentum for Evoque in the United States. Edwards Lifesciences had initiated the U.S. launch of Evoque earlier this year, and the new data could play a critical role in the product’s market penetration and adoption rate.
The analyst’s comments indicate that the upcoming TCT presentation is a key event for Edwards Lifesciences. The company’s stakeholders are likely to watch closely for the impact of the trial results on the product’s commercial trajectory.
The Hold rating reflects a cautious optimism, with the price target of $70.00 remaining unchanged. Edwards Lifesciences’ stock performance and market position will be closely monitored in relation to the Triscend II trial outcomes and the subsequent potential label expansion for Evoque.
In other recent news, Edwards Lifesciences, a global leader in patient-focused medical innovations, has been upgraded from Underperform to Market Perform by Bernstein. The upgrade comes in light of a shift in the Transcatheter Aortic Valve Replacement (TAVR) market dynamics. Edwards Lifesciences reported a 5.6% organic growth in TAVR during the third quarter of 2024, a slight decrease from the previous quarters. However, Bernstein forecasts a potential growth of 6.5% for the company in 2025, indicating that investor expectations have adjusted to this outlook.
In addition to the upgrade, Edwards Lifesciences reported robust third-quarter growth with sales reaching $1.35 billion, a 10% increase in constant currency from the previous year. The company’s TAVR and Transcatheter Mitral and Tricuspid Therapies (TMTT) were significant growth drivers, with TAVR sales hitting $1 billion and TMTT sales surging 74% to $91 million. The company anticipates continued growth in these areas, with full-year growth guidance for TAVR steady at 5% to 7%.
InvestingPro Insights
To complement the analysis of Edwards Lifesciences’ (NYSE:EW) Evoque product and its potential label expansion, let’s consider some financial metrics and insights from InvestingPro.
Edwards Lifesciences currently boasts a market capitalization of $41.28 billion, reflecting its significant presence in the medical devices industry. The company’s P/E ratio stands at 24.87 (adjusted for the last twelve months as of Q3 2024), indicating that investors are willing to pay a premium for its earnings, possibly due to growth expectations from products like Evoque.
InvestingPro Tips highlight that Edwards Lifesciences is trading at a low P/E ratio relative to its near-term earnings growth, which could be attractive for investors considering the potential impact of Evoque’s label expansion. Additionally, the company has been profitable over the last twelve months, with a high return over the last decade, suggesting a track record of financial success that may continue with new product developments.
The company’s revenue for the last twelve months as of Q3 2024 was $6.31 billion, with a robust gross profit margin of 76.6%. This strong profitability could provide Edwards Lifesciences with the resources needed to support the launch and potential expansion of Evoque in the U.S. market.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights, with 11 more tips available for Edwards Lifesciences.
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