Stifel on Wednesday reaffirmed its Buy rating for Edwards Lifesciences (NYSE: EW) and kept a $110.00 price objective, a level that represents about a 27% potential upside from the stock's prevailing price of $78.19. Independent valuation data included with the report indicate the shares may be modestly undervalued based on fair value estimates.
Edwards reported fourth-quarter 2025 revenue of $1.57 billion, an 11.6% increase from the prior year and marginally above both Stifel's internal forecast of $1.54 billion and the consensus street estimate of $1.55 billion. The company’s revenue performance also corresponds with an 11.55% gain in revenue over the past twelve months.
The primary contributor to the top-line outperformance was transcatheter aortic valve replacement, or TAVR, which accounted for roughly 74% of Edwards' 2025 revenue and grew 10.6% year-over-year in the quarter. That product line remains the dominant driver of the business and was specifically highlighted in the analyst note as underpinning the stronger revenue result.
On the profitability side, Edwards reported adjusted quarterly earnings per share of $0.58, below the $0.62 per-share figure expected by Stifel and the consensus. Management attributed the shortfall to higher-than-anticipated SG&A spending, which rose to support commercial initiatives and other growth programs.
Looking ahead, company leadership signaled an intention to adopt a more measured pace of spending through 2026, and they maintained existing financial guidance. Management pointed to several tailwinds for continued TAVR adoption - including favorable clinical data, changes in European guidelines, the exit of a competitor from the market, and ongoing uptake of the Sapien 3 Ultra Resilia valve with positive pricing dynamics - as reasons to expect sustained growth in that franchise.
Other items of note from the quarter: there were no disclosures of mergers or acquisitions, and recent activity among sell-side firms has not produced any upgrades or downgrades for the company. The combination of a revenue beat and an EPS miss provides a mixed signal for investors, with top-line strength concentrated in the TAVR franchise and margin pressure stemming from increased operating expenditures.
Contextual summary
Stifel's reiteration of a Buy rating and a $110 target rests on Edwards' solid revenue trajectory, particularly in TAVR, while the company navigates higher SG&A outlays that compressed reported EPS in the latest quarter. Management's commitment to rein in spending in 2026 and the absence of near-term corporate transactions were also noted.