Edwards Lifesciences Is Poised For Solid Growth In 2025—Analyst Highlights TAVR Growth, Margin Expansion

Core Viewpoint - Edwards Lifesciences Corporation is experiencing a positive shift in its stock performance, driven by an upgrade from Stifel analyst Rick Wise, who raised the price target to $90 from$75, indicating a potential re-acceleration in TAVR growth by 2025 [1][6]. Group 1: TAVR Growth Potential - Recent discussions with TAVR physicians suggest an increase in post-EARLY TAVR referrals, indicating a positive trend in TAVR procedures [2]. - The FDA is anticipated to expand the TAVR label for asymptomatic severe aortic stenosis in mid-2025, with some physicians already treating patients ahead of this change [2]. - TAVR growth had slowed post-COVID, but a more realistic growth forecast of 5-7% for 2025, combined with new data and the expected label expansion, suggests a rebound in TAVR growth [3]. Group 2: Business Strategy and Valuation - The sale of Edwards' Critical Care business to Becton, Dickinson and Company in September 2024 is expected to positively impact the company's valuation, as this segment was the lowest-growth area and non-structural heart asset [4]. - With a focus solely on structural heart, Edwards could potentially trade at a higher-than-historical multiple post-sale [4]. Group 3: Financial Outlook - At the recent annual Analyst Day, the CFO emphasized an increased focus on operating leverage, with expectations of operating margin expansion of 50-100 basis points annually starting in 2026 [5]. - This shift towards margin expansion and EPS growth is viewed positively, as investors may increasingly focus on these aspects as 2026 approaches [6].