Edwards Lifesciences stock upgraded to Market Perform by Bernstein
On Monday, Bernstein upgraded shares of Edwards Lifesciences (NYSE: NYSE:) from Underperform to Market Perform. The revision of the stock’s status comes as the firm acknowledges a shift in the Transcatheter Aortic Valve Replacement (TAVR) market dynamics.
The analyst from Bernstein indicated that the original Underperform rating was influenced by concerns over decelerating growth and heightened competition within the TAVR market. However, current investor expectations have moderated, and with Edwards Lifesciences’ prospects for 2025 becoming clearer, the risk/reward profile is now viewed as more even.
Edwards Lifesciences reported that TAVR growth was at 5.6% organically in the third quarter of 2024, a decrease from the 6.6% organic growth seen in the first quarter and 5.8% in the second quarter. Bernstein forecasts that TAVR growth for Edwards Lifesciences will be around 6.5% in 2025, which is approximately 1% below the consensus. This forecast aligns with the belief that investor expectations have adjusted to this outlook.
The company anticipates that TAVR growth in the fourth quarter will fall below the 5% to 7% range due to several factors. These include the impact of hurricanes in the southeast and a one-time rebate adjustment with a distributor in China, estimated to be around $5 million. This adjustment is expected to influence the company’s performance in the short term.
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