Edwards Lifesciences stock price target raised to $85 by UBS on strong TAVR sales

Edwards Lifesciences (EW) reported strong Q2 2025 results, with EPS of $0.67 and revenue of $1.53 billion both surpassing analyst expectations, driven by robust TAVR and TMTT segment performance. The company raised its full-year 2025 TAVR growth guidance to 6%-7%, prompting multiple firms, including RBC Capital and Piper Sandler, to raise price targets and maintain positive ratings. However, UBS maintained a Neutral rating, raising its price target to $85 but noting fair valuation at a 28x P/E and expressing uncertainty about sustained high-single-digit growth without future trial data expected in late 2026.

Analysis

Edwards Lifesciences (EW) delivered a strong second-quarter 2025 performance, surpassing consensus estimates with revenue of $1.53 billion and EPS of $0.67. This outperformance was driven by an approximately 3% and 3.5% beat in its key Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) segments, respectively. The company's robust execution, underscored by 9.5% revenue growth over the last twelve months, prompted management to increase its full-year 2025 TAVR growth guidance to a 6%-7% range. This positive operational momentum led several firms, including RBC Capital and Piper Sandler, to issue price target hikes with Outperform or Overweight ratings. However, a note of caution is present in the market sentiment, articulated by UBS. Despite raising its price target to $85, UBS maintained a Neutral rating, citing a valuation of approximately 28 times price-to-earnings as representing fair value. The firm also expressed uncertainty regarding the company's ability to achieve sustainable high-single-digit growth without positive data from its PROGRESS trial, which is not expected until late 2026, creating a dichotomy between near-term strength and long-term growth catalysts.

Key Decisions for Investors

• Given the strong earnings beat and raised guidance, momentum-focused investors may find the stock attractive, especially as it approaches its 52-week high.
• Investors should consider the valuation, as UBS suggests the current 28x P/E multiple reflects fair value, potentially limiting significant near-term upside without new catalysts.
• For long-term holders, the key event to monitor is the PROGRESS trial data expected in late 2026, which is positioned as the primary catalyst needed to sustain high-single-digit sales growth and justify a higher valuation multiple.