Buy Rating Affirmed for Intuitive Surgical Amidst Ongoing Legal Challenges and Strong Financial Performance

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 related to Intuitive Surgical’s position in ongoing legal proceedings. The recent legal developments have been largely in line with expectations, with the notable exception of the court’s decision to regard ISRG’s da Vinci robot and EndoWrists as separate products. While this has challenged one of ISRG’s defensive arguments, the company is actively contesting this interpretation. Biegelsen’s outlook is influenced by the strength of ISRG’s challenges and the potential for these legal issues to be resolved in a way that’s favorable to ISRG.

Furthermore, Biegelsen takes into account the fact that key elements of the antitrust case hinge on factual disputes that will be decided at trial. This includes whether resetting the counters on EndoWrists contravenes FDA rules, and whether ISRG’s imposed restrictions are justifiable as measures to protect patient safety. The fact that the court has left these questions open for trial, rather than making a summary judgment, suggests that ISRG will have the opportunity to present a strong defense. These points, alongside the company’s robust financial metrics such as a high return on invested capital (ROIC) and a favorable three-year earnings per share compound annual growth rate (CAGR), underpin Biegelsen’s positive recommendation.

In another report released on April 23, Leerink Partners also maintained a Buy rating on the stock with a $449.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

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.