Edwards Lifesciences (EW – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst David Roman from Goldman Sachs maintained a Buy rating on the stock and has a $89.00 price target.
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David Roman has given his Buy rating due to a combination of factors that highlight Edwards Lifesciences’ promising growth trajectory. The company is confident in achieving a 5-7% growth in its TAVR segment by 2025, with expectations of continued growth thereafter. Additionally, the TMTT franchise is gaining momentum, supported by the success of products like EVOQUE and Pascal, which are driving advancements in tricuspid and mitral valve procedures.
Furthermore, Edwards Lifesciences is on track to achieve over 30% operating margins, which is an improvement from the current 27-28%. The company’s focus on profit and loss leverage, especially after the separation of its Critical Care business, is expected to result in earnings per share growth in the low-to-mid-teens. This growth potential positions Edwards Lifesciences among the top growth companies in the MedTech sector, likely leading to positive earnings revisions and an expansion of its price-to-earnings multiple. Additionally, the company’s capital allocation strategy, which includes significant share repurchases and capital expenditures, provides further upside potential.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EW in relation to earlier this year.