Analyst Note| Debbie S. Wang |
Narrow-moat Edwards Lifesciences ended 2020 with just 1% underlying growth for the full year, driven by transcatheter aortic valve replacements, which offset declines in surgical heart valves and critical care. Though management is confident Edwards can return to double-digit top line growth in 2021, we’re holding steady on our fair value estimate. Our projection for top line growth this year falls slightly short of management’s range, which reflects our expectation that the first half of 2021 will still be hindered by the pandemic. We anticipate more normal growth in the second half, though this could also become derailed if the new SARS-CoV-2 variants in South Africa and Brazil take hold in the U.S.