The Irvine, CA-based company is focused on technologies that treat structural heart disease and critically ill patients, including the development and commercialization of heart valve therapies.
The price target hike comes as the company has led the development of the transcatheter aortic valve replacement (TAVR) market, the firm said. The TAVR market will continue its development in 2016 with a potential FDA label expansion to include intermediate risk patients.
"Add in a strong balance sheet, good cash generation, and a series of upcoming pipeline catalysts (US intermediate risk indication approval, start of US low risk trial, Sapien 3 Japanese approval, etc.), and we find ample reasons to be bullish on Edwards," JPMorgan said in an analyst note.
Shares of Edwards Lifesciences closed at $79.82 on Monday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate EDWARDS LIFESCIENCES CORP as a Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 24.8% when compared to the same quarter one year prior, going from $94.60 million to $118.10 million.
- EW's revenue growth trails the industry average of 30.2%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EW's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.98, which clearly demonstrates the ability to cover short-term cash needs.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for EDWARDS LIFESCIENCES CORP is currently very high, coming in at 79.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.18% significantly outperformed against the industry average.
- You can view the full analysis from the report here: EW