Intuitive Surgical price target raised to $600 from $585 at UBS

Investing.com - UBS raised its price target on Intuitive Surgical (NASDAQ:ISRG) stock to $600 from $585 on Thursday, while maintaining a Neutral rating following the company’s strong quarterly results. The surgical robotics giant, currently valued at $194 billion, has analyst targets ranging from $350 to $685, according to InvestingPro data.

The surgical robotics company reported quarterly performance that exceeded expectations across all metrics, with revenue, earnings per share, system placements, and procedure volume growth all surpassing both UBS and consensus estimates. The company maintains impressive revenue growth of 21% and a robust gross profit margin of 67%.

UBS noted that Intuitive Surgical shares had declined by low double-digits year-to-date before the earnings release, partly due to crowded long positioning and a broader macro-driven rotation in the market.

The firm observed that procedure volumes appear to be trending upward, potentially supporting the bull thesis of increased utilization with the company’s da Vinci 5 surgical system.

Despite the strong quarter, UBS maintained its Neutral stance, citing the stock’s healthy valuation, uncertainty about tangible upside drivers, increasing competition, and potential risks from hospital budget constraints and patient coverage issues.

In other recent news, Intuitive Surgical reported impressive third-quarter financial results, with revenue reaching $2.505 billion, marking a 22.9% year-over-year increase. The company’s adjusted earnings per share came in at $2.40, surpassing estimates of $1.85. This strong performance led several analyst firms to raise their price targets for Intuitive Surgical. Truist Securities increased its target to $620, highlighting the company’s over 20% growth in revenue and earnings per share for two consecutive quarters. Piper Sandler also raised its target to $610, noting the robust performance across key operating metrics such as procedure volumes and system placements. Leerink Partners set a new target of $600, citing worldwide sales exceeding consensus by 4% and procedure growth of 19% year-over-year. BTIG adjusted its target to $589, acknowledging the company’s results that exceeded their revenue and earnings predictions. Additionally, RBC Capital increased its price target to $625, emphasizing the company’s sales and earnings surpassing forecasts by 4% and 20%, respectively.

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