Analysts in Defense of Edwards Lifesciences

Edwards Lifesciences Corp. (NYSE: EW) is the big disappointment of the day on Tuesday after the company lowered its TAVI sales guidance for the third quarter. What is so interesting is that some analysts are defending Edwards due to the large drop with this being an attractive entry point.

Canaccord Genuity said it is lowering its price target to $109 but also said that it is defending Edwards:

... and would accumulate shares below $95/share near term as we remain believers in strong long-term revenue and EPS growth potential from future TAVI uptake ... Our new TAVI estimates through 2015 still reflect strong growth, but we inject more conservatism to account for these factors. We think C-A approval will come soon.

Leering Swann said that this creates a rare buying opportunity for a stock that has tripled over the past four years or so. Some of the drop was even tied to rare doctor vacation seasonality with a broad rebound in the fourth quarter expected.

Even Lazard trimmed its target to $100 from $110 but said that any price under $90 represents an attractive entry point.

Edwards Lifesciences shares are down 18% at $87.90 against a 52-week range of $61.59 to $110.79 and the consensus target (may not include the drop today) is almost $106.70 per Thomson Reuters.

JON C. OGG


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