A Fresh Look at Edwards Lifesciences (EW) Valuation as Analyst Upgrade Highlights TCT Conference Catalyst

Edwards Lifesciences (EW) was recently added to Evercore ISI’s “Tactical Outperform” list after its stock pulled back in recent weeks. This move comes as investors look ahead to new long-term data on its TAVR procedure at the upcoming TCT conference.

See our latest analysis for Edwards Lifesciences.

Edwards Lifesciences shares have slipped about 5% over the last three months as investor sentiment wavered. However, a 6.1% total shareholder return over the past year shows the longer-term picture remains constructive. Attention is now turning to the potential impact of upcoming clinical data and renewed analyst optimism.

If the latest moves in Edwards Lifesciences have you curious about other healthcare innovators making headlines, it's a great moment to discover See the full list for free.

With the stock drifting below analyst targets and confidence building ahead of key clinical data, investors are left to wonder if Edwards Lifesciences is currently undervalued or if the market is already factoring in future growth.

Most Popular Narrative: 17% Undervalued

With Edwards Lifesciences shares closing at $72.65 and the prevailing narrative estimating fair value at $87.73, there is a notable gap that has market-watchers intrigued. This divergence signals optimism about future potential and sets the stage for a closer look at what is fueling this view.

The expected approval of the early TAVR indication in the second quarter, along with policy and guideline changes in the U.S. and globally, represents a multiyear growth opportunity that could significantly enhance revenue streams in the future. The planned launch of the transcatheter tricuspid valve EVOQUE in 2024 is anticipated to uniquely position Edwards to gain market share and increase revenues as it becomes the first company to develop and offer this therapy.

Read the complete narrative.

Want to know the secret sauce behind this bullish price target? Bold revenue growth forecasts, rising profits, and a premium future valuation all converge in the narrative. The real surprise is which numbers are carrying the most weight. Explore the full story to see what is powering this double-digit fair value boost.

Result: Fair Value of $87.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing tariff impacts or slower than expected TAVR expansion could challenge Edwards Lifesciences' growth assumptions and pressure future margins.

Find out about the key risks to this Edwards Lifesciences narrative.

Another View: The SWS DCF Model

Looking through the lens of the SWS DCF model, Edwards Lifesciences is estimated to have a fair value of $83.22 per share. This places the current price about 13% below this projection. Does this suggest an even deeper undervaluation, or does it highlight gaps in longer-term growth assumptions?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Edwards Lifesciences Narrative

If you have your own perspective or want to dig deeper into the numbers, you can craft a unique Edwards Lifesciences narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Edwards Lifesciences.

Looking for More Smart Investment Ideas?

Don’t let the best opportunities slip by. Fuel your investing momentum with unique screens that uncover hidden potential before the crowd catches on.

• Boost your search for high-growth innovation by checking out these 24 AI penny stocks, which are transforming entire industries through artificial intelligence breakthroughs and emerging technologies.
• Unearth overlooked bargains and identify gems by reviewing these 874 undervalued stocks based on cash flows, which may be set for a turnaround or currently offer compelling value.
• Strengthen your portfolio’s cash flow with these 20 dividend stocks with yields > 3% that offer yields above 3%, helping you tap into reliable income and long-term stability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com