Edwards Lifesciences (EW) has done a lot of good things - foremost among them being the decision to move beyond its stable, unexciting legacy businesses into more dynamic and more profitable markets. It's a model that St. Jude Medical (STJ) has used to good effect, and it has certainly made this a much more interesting company over the past three years.
The problem, though, is whether or not investors have gotten a little too excited about Edwards Lifesciences and its transcatheter heart valve products. While transcatheter aortic valve implantation (TAVI) is a legitimate breakthrough in medical technology and likely to be a multi-billion dollar market, investors seem to have overshot the mark. Even as Edwards stock has come off about 20% from its highs, current valuation still presupposes a huge level of market transformation.
To read the full article, please click here:
Even After A Big Pullback, Edwards Lifesciences May Still Be Expensive
No comments:
Post a Comment