Buy Rating Affirmed for Intuitive Surgical Amid Strong Q1 Performance and Positive Outlook

Analyst Larry Biegelsen of Wells Fargo maintained a Buy rating on Intuitive Surgical (ISRG – Research Report), retaining the price target of $416.00.

Larry Biegelsen has given his Buy rating due to a combination of factors that suggest a robust outlook for Intuitive Surgical. The company’s first-quarter revenues and earnings per share (EPS) exceeded the consensus expectations, demonstrating its financial health and growth potential. Moreover, a significant increase in procedure growth by 16% and the raised guidance for 2024 procedure growth from 13-16% to 14-17% indicate a strong demand for the company’s products and services. Early feedback on the newly approved da Vinci 5 system has been positive, reinforcing the company’s innovative edge and potential for market expansion.
Despite potential challenges in system placements due to constrained supply of the da Vinci 5, management has shown confidence by maintaining a solid growth outlook. Biegelsen also took into account the resolution of Ion supply challenges and a slight increase in revenue estimates for 2024, which aligns with management’s commentary and updated guidance. The target price remains unchanged, based on future EPS estimates, highlighting a conviction in the company’s long-term earnings trajectory. These factors collectively underpin Biegelsen’s optimistic stance on Intuitive Surgical’s stock, warranting a Buy rating.

In another report released on April 15, Truist Financial also maintained a Buy rating on the stock with a $450.00 price target.

Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ISRG in relation to earlier this year.

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Intuitive Surgical (ISRG) Company Description:

Intuitive Surgical, Inc. manufactures and develops robotic-assisted products, most notably with the da Vinci surgical system and related instruments and accessories, to improve clinical outcomes of patients through minimally invasive surgery. Its products include Da Vinci and Ion. The company was founded in 1995 and is headquartered in Sunnyvale, California.