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Why Jefferies Raised Its Target Price on EW Stock

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Jan. 3 2018, Published 8:34 p.m. ET

Target price revision by Jefferies

On December 7, 2017, Jefferies analyst Raj Denhoy increased the 12-month target price for Edwards Lifesciences (EW) stock from $132 per share to $136 per share. The analyst maintained a “buy” rating. The target price increase was announced after Edwards Lifesciences’ investor conference that day. On December 7, 2017, EW stock rose ~3.6%, and the Vanguard Mid-Cap ETF (VO) rose ~0.70%.

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Rationale behind the increase in target price

Raj Denhoy shared a number of conclusions at Edwards Lifesciences’ investor conference on December 7. As he had confidence in the growth potential of Edwards Lifesciences, he increased the 12-month target price on EW stock.

The analyst cited larger-than-anticipated opportunities in the aortic valve market, led by efforts to reach undiagnosed and untreated patients—major drivers of Edwards’s future growth. Strong positioning to tap the mitral and tricuspid therapy markets is another strong growth driver for the company. Edwards is making considerable investments towards innovation in 2018, which is expected to be a transition year, shaping the company’s growth profile.

Jefferies’s target price and recommendations

On November 23, 2017, Jefferies reaffirmed its “buy” rating on Medtronic (MDT) stock, and had a target price of $99 for the stock. Jefferies has a “hold” rating on BSX stock and a target price of $28. For Abbott Laboratories (ABT), Jefferies has a “buy” rating and a target price of $65.

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