On Thursday, RBC Capital Markets maintained an Outperform rating on shares of Edwards Lifesciences (NYSE: NYSE:EW), while increasing the stock's price target to $85 from $80. This adjustment followed the company's presentation of its 2025 outlook and long-range plan at its Investor Day in New York.
The company's forecast exceeded market expectations, predicting an 8-10% revenue growth excluding foreign exchange impacts, which is higher than the consensus estimate of 7.8%. This announcement led to a 5.5% rise in the stock's value.
During the event, Edwards Lifesciences outlined its financial goals, projecting over 10% year-over-year revenue growth and double-digit earnings per share (EPS) growth from 2026 onwards. The company also expects to achieve annual operating margin expansion of 50-100 basis points.
A significant milestone highlighted in the outlook was the anticipation of generating $2 billion in sales from its Transcatheter Mitral and Tricuspid Therapies (TMTT) by 2030.
The company's positive forecast is partly attributed to its strategic position in favorable end-markets and the presence of multiple catalysts that could drive growth. The updated price target reflects confidence in the company's ability to execute its strategic plans and capitalize on market opportunities.
Edwards Lifesciences' upbeat long-term guidance has reinforced RBC Capital Markets' positive stance on the stock. The firm's analysis suggests that despite previous concerns over Transcatheter Aortic Valve Replacement (TAVR) capacity issues and rising competition, Edwards Lifesciences is well-positioned for sustained growth and remains an attractive investment with a favorable valuation.
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