TD Cowen analyst Josh Jennings maintained a Hold rating on Edwards Lifesciences today and set a price target of $84.00.
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Josh Jennings has given his Hold rating due to a combination of factors surrounding Edwards Lifesciences’ Sapien transcatheter aortic valve replacement (TAVR) system. The PARTNER 3 trial, which is crucial for supporting the use of the Sapien system in low-risk patients, shows that while the initial results were promising, the long-term data indicates that the early advantages may diminish over time. This is evident as the mortality and stroke rates for TAVR and surgical aortic valve replacement (SAVR) have converged over a five-year period, with differences being minimal and not statistically significant.
Despite these findings, the Sapien system’s enhancements, such as the S3 Ultra RESILIA, are expected to mitigate any negative perceptions. However, the primary concern remains the optics rather than any immediate changes in clinical practice. Additionally, the competitive landscape, particularly with Medtronic’s Evolut Low-Risk trial showing favorable outcomes, adds to the cautious outlook. These elements collectively contribute to the Hold rating, reflecting a neutral stance on the stock’s potential performance in the near term.
Jennings covers the Healthcare sector, focusing on stocks such as TransMedics Group, Boston Scientific, and Medtronic. According to TipRanks, Jennings has an average return of 1.1% and a 47.39% success rate on recommended stocks.
In another report released on October 14, Leerink Partners also reiterated a Hold rating on the stock with a $84.00 price target.