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Bernstein Upgrades Edwards Lifesciences Amid Shifting TAVR Market
On Monday, Bernstein announced an upgrade for Edwards Lifesciences (NYSE: EW) from Underperform to Market Perform, signaling a notable shift in their analysis of the company’s stock. This change arises as the firm recognizes evolving conditions in the Transcatheter Aortic Valve Replacement (TAVR) market.
The decision to revise the rating follows earlier apprehensions regarding slowing growth rates and increasing competition within the TAVR landscape. However, adjustments in investor expectations, paired with a clearer outlook for Edwards Lifesciences’ performance in 2025, have resulted in a more balanced view of the company’s risk and reward profile.
Recent figures disclosed by Edwards Lifesciences demonstrate an organic growth rate of 5.6% in TAVR sales for the third quarter of 2024. This marks a decline from the 6.6% growth observed in the first quarter and a dip from 5.8% in the second quarter. Bernstein projects that the growth rate for TAVR sales will stabilize around 6.5% in 2025, slightly trailing the broader market consensus by approximately 1%. This prediction suggests that the market has begun to recalibrate expectations based on the latest developments.
Looking ahead, the company cautions that TAVR growth in the fourth quarter may not reach the previously anticipated range of 5% to 7%. Contributing factors include recent hurricanes affecting operations in the Southeast and a one-time rebate adjustment with a distributor in China, which is projected to cost approximately $5 million. This adjustment is anticipated to have a short-term impact on the company’s overall performance.
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