J.P. Morgan Raises PT On EW To $78

J.P. Morgan is raising its price target on Edwards Lifesciences EW from $76 to $78 based upon an impressive 1Q. In the report, J.P. Morgan writes, “Edwards reported strong 1Q results Wednesday night, with sales of $404.5M (+18.8% reported, +17.1% underlying) coming in $20M above Street consensus and $23M better than our estimate, driven by continued strength from Sapien in Europe, inventory stocking in Critical Care, and an unexpected reacceleration in the base valve business. On the bottom line, 1Q EPS of $0.53 (+32.3%) topped both consensus and our own forecast by a full $0.11. While one-time investment gains contributed $0.024, the company's 1Q operating margin of 19.4% came in an impressive 220bps better than our thinking and, along with the top line upside, drove the majority of the bottom line beat.” J.P. Morgan maintains an Underweight rating on the stock. EW closed at $84.36 yesterday.