Edwards Lifesciences stock price target raised to $90 by Piper Sandler

Edwards Lifesciences (EW) reported stronger-than-expected second-quarter results, with EPS of $0.67 and revenue of $1.53 billion, driven by robust 7.8% ex-FX growth in its TAVR business and 57% ex-FX growth in TMTT. Following this performance and anticipating tailwinds like improving center capacity and a competitor's European exit, the company raised its fiscal year 2025 TAVR growth guidance to 6-7% and overall revenue growth guidance to 9-10%. Consequently, several analyst firms, including Piper Sandler ($90 PT), TD Cowen ($84 PT), and RBC Capital ($89 PT), increased their price targets, reflecting confidence in EW's improved outlook and financial health.

Analysis

Edwards Lifesciences (EW) demonstrated significant operational momentum in its second-quarter 2025 results, outperforming analyst expectations with an EPS of $0.67 against a $0.62 forecast and revenue of $1.53 billion versus an anticipated $1.49 billion. This performance was driven by broad-based strength, particularly a 7.8% year-over-year (ex-FX) growth in its core Transcatheter Aortic Valve Replacement (TAVR) business and an impressive 57% year-over-year (ex-FX) surge in its Transcatheter Mitral and Tricuspid Therapies (TMTT) segment. The company's robust financial health is further underscored by a gross profit margin of 78.9% and a 35.8% return on assets over the last twelve months. Based on this strong first-half performance and identified tailwinds—including favorable asymptomatic data, enhanced center capacity, and a competitor's withdrawal from the European market—management has raised its full-year 2025 revenue growth guidance to 9-10% and its TAVR-specific growth outlook to 6-7%. The positive revisions have prompted multiple analyst upgrades, with Piper Sandler raising its price target to $90, RBC Capital to $89, and TD Cowen to $84, reflecting a strong consensus on the company's improved growth trajectory.

Key Decisions for Investors

• Given the strong earnings beat, upwardly revised full-year guidance, and multiple analyst price target increases, investors should view the current results as a strong validation of the company's growth strategy and market position.
• Investors should monitor the execution on key growth drivers, particularly market share capture in Europe following a competitor's exit and the translation of improved center capacity into sustained TAVR procedure volumes, as these are critical to achieving the new 9-10% revenue growth target.
• With the stock trading near its 52-week high, investors may consider the new analyst price targets of $84-$90 as a guide for near-term valuation, but should remain cognizant that significant positive news is likely already reflected in the current price.