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Investing.com - Bernstein SocGen Group has raised its price target on Intuitive Surgical (NASDAQ:ISRG) to $685.00 from $675.00 while maintaining an Outperform rating as the company’s da Vinci (EPA:SGEF) 5 surgical system enters its broad launch phase. The medical technology giant, currently valued at $179.9 billion, trades at a premium P/E ratio of 72.35, reflecting market confidence in its growth potential. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The company reported strong second-quarter results with revenue of $2.44 billion, representing 21% growth and exceeding consensus estimates by 4%. Adjusted earnings per share reached $2.19, a 23% increase that beat expectations by over 13%, despite a 4% miss on international da Vinci systems placements. InvestingPro data reveals impressive financial health metrics, with a robust gross margin of 67.09% and a strong current ratio of 4.98, indicating excellent operational efficiency and liquidity.
Intuitive Surgical’s da Vinci 5 placements grew to 180 units in the quarter, up from 147 in the first quarter, while procedures grew 17% globally, slightly ahead of consensus expectations. The company’s gross and operating margins exceeded Street forecasts by 160 and 400 basis points, respectively.
Following da Vinci 5’s approval in March 2024, Intuitive Surgical is now transitioning from limited to broad launch in the U.S., allowing customers to upgrade existing fleets to the new system. International expansion is also accelerating after recent regulatory approvals in Japan and Europe.
The company has raised its fiscal year 2025 procedure guidance by 25 basis points and increased gross margin guidance by 75 basis points due to a revised tariff outlook, contributing to Bernstein’s decision to adjust its price target.
In other recent news, Intuitive Surgical reported strong second-quarter results, achieving a revenue of $2.44 billion, which marks a 21% increase year-over-year. This performance exceeded consensus estimates by 400 basis points, with earnings per share reaching $2.19, surpassing the $1.92 consensus estimate. The company’s next-generation DV5 robotic system saw 180 placements in the second quarter, up from 147 in the first quarter, indicating successful progress under new CEO Dave Rosa. BTIG, Piper Sandler, and Raymond (NSE:RYMD) James have all responded positively to these results, with BTIG raising its price target to $571 and Piper Sandler increasing its target to $595 while maintaining an Overweight rating. Raymond James reiterated its Outperform rating with a $592 price target, highlighting the company’s strong financial performance. However, Erste Group downgraded the stock to Hold from Buy, citing concerns over valuation and margin pressure. Despite this downgrade, Stifel reiterated its Buy rating with a $670 price target, reflecting confidence in the company’s future prospects. These developments underscore a mixed but generally positive outlook from analysts on Intuitive Surgical’s recent performance.
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