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Edwards Lifesciences Corp EW

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Edwards Lifesciences Rebounds and Then Some; Raising Our Fair Value Estimate

Debbie S. Wang Senior Equity Analyst

Analyst Note

| Debbie S. Wang |

As with many medical device firms, narrow-moat Edwards Lifesciences saw strong performance in second quarter, fueled by the resumption of cardiac procedures as vaccinations have taken hold. After adjusting our full-year projections for transcatheter aortic valves, surgical valves, and critical care slightly upward, we’re raising our fair value estimate to $84 per share, up from $72, to better reflect what we suspect may be more robust flow of new patients into the referral and treatment pipeline. These adjustments were partially offset by our expectation that the U.S. corporate tax rate will rise to 26% after 2021. Nonetheless, shares remain overvalued, from our perspective.

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Company Profile

Business Description

Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. Its key products include surgical tissue heart valves, transcatheter valve technologies, surgical clips, catheters, and monitoring systems used to measure a patient's heart function during surgery. The firm derives about 55% of its total sales from outside the U.S.

One Edwards Way
Irvine, CA, 92614
T +1 949 250-2500
Sector Healthcare
Industry Medical Devices
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Aggressive Growth
Employees 14,900