Citing a more balanced risk-reward view for the stock, Bernstein improved Edwards Lifesciences (EW, Financial) to Market Perform from Underperform. Previously hesitant, the investment business was worried about declining growth and increasing competitiveness in the transcatheter aortic valve replacement (TAVR) sector.
Bernstein now adds that market expectations for TAVR have changed, which helps to explain the price of the stock as Edwards' 2025 projection gets clarity. Edwards' TAVR segment is expected by the company to rise in 2025 around 6.5%, somewhat below the average estimate by about 1%.
The company said in a note, "buy-side expectations have essentially changed to fit this new reality." Impacted by recent hurricanes and a one-time China distributor rebates adjustment, Edwards' TAVR increase in the fourth quarter likewise falls at the lower half of the company's target range of 5%-7%. Leading TAVR player Edwards Lifesciences has struggled with changing market dynamics and a competitive environment. But Bernstein's updated view implies that these challenges might already be included into the stock.
