Although
I had been writing for some time that I thought Edwards
Lifesciences (NYSE: EW) was
significantly overvalued by the market, I don't take any particular
pleasure in seeing the stock down almost one-quarter over the past
year and year-to-date in 2013. Even so, it's a valuable reminder as
to the risks of getting a little too bullish about first movers in
fast-growing markets and the danger of the idea that “valuation
doesn't matter”.
While
the valuation has indeed come down significantly for Edwards, so too
have the growth expectations. I do believe the market for
transcatheter heart valves will exceed $4 billion in 2020 and that
Edwards will remain the market leader. With free cash flow likely to
grow at a low-teens rate and the stock slightly below fair value,
these shares look interesting for more risk-tolerant investors.
Please read the full article here:
http://www.massdevice.com/blogs/massdevice/edwards-lifesciences-comes-back-down-earth-hard
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