Analyst Note| Debbie S. Wang |
Edwards Lifesciences posted solid first-quarter results that featured procedure volumes that gained steam through the quarter, as coronavirus transmission rates fell in February and March. Our slight adjustments weren’t substantial enough to shift our valuation, and we’re leaving our $72 per-share fair value estimate unchanged for now. Despite pressure from the pandemic since last spring, Edwards has been able to navigate the disruption, and we expect acceleration in trancatheter aortic and the nascent transcatheter mitral procedures, as the pandemic recedes over the coming quarters especially in the U.S. In keeping with its long-range strategy, Edwards continues to invest in major clinical trials. The firm’s appetite for investing in differentiated technology and the robust trials to prove the clinical value have been the main drivers of Edwards’ narrow economic moat.