Based on the recent data and analyst insights, here's a concise analysis for EW stock:
Technical Analysis
The stock is currently trading at $70.98 with a +0.90% gain in regular market hours. The stock is showing signs of consolidation near the Fibonacci pivot point of $71.26, with immediate resistance at $73.34 (R1) and support at $69.17 (S1). The RSI at 44.93 indicates neutral momentum, though slightly leaning towards oversold territory.
Recent Analyst Actions
Recent analyst sentiment has been predominantly positive. Stifel analyst Rick Wise upgraded EW from Hold to Buy on January 30, 2025, raising the price target significantly from $75 to $90, citing potential TAVR growth re-acceleration. This upgrade was based on conversations with six TAVR physicians and a survey of thirty doctors, with fifteen reporting approximately 12% near-term growth acceleration.
Growth Catalysts
- FDA expected to expand asymptomatic severe aortic stenosis (AS) TAVR label in mid-2025
- Sale of Critical Care business to Becton, Dickinson and Company completed in September 2024
- Expected operating margin expansion of 50-100 basis points annually starting in 2026
Buy Case
The stock appears attractive for buying considering:
- Strong TAVR growth potential with physician survey indicating 12% near-term acceleration
- Strategic focus on structural heart business after divesting Critical Care segment
- Current price ($70.98) offers significant upside to recent analyst targets (average $80.64)
Sell Case
Risks to consider:
- Current RSI indicates neutral momentum
- Recent downgrade by Wolfe Research to Underperform with $60 target in January 2025
- Transition year in 2025 before margin expansion begins
Conclusion
Based on the strong analyst upgrades, positive TAVR growth outlook, and potential margin expansion starting 2026, EW presents a buying opportunity at current levels. The stock is trading well below the average analyst price target of $80.64, suggesting significant upside potential.