Intuitive Surgical price target raised to $615 from $605 at RBC Capital

Investing.com - RBC Capital raised its price target on Intuitive Surgical (NASDAQ:ISRG) to $615 from $605 on Wednesday, while maintaining an Outperform rating on the surgical robotics company. According to InvestingPro data, the company, currently valued at $176.81B, is trading above its Fair Value, with a P/E ratio of 71.36x.

The adjustment follows Intuitive Surgical’s quarterly results, which exceeded expectations with sales beating estimates by 3.8% and earnings per share surpassing forecasts by 13.7%. The company has maintained impressive growth with revenue increasing 19.08% over the last twelve months. InvestingPro analysis reveals over 10 additional investment tips for this stock, available to subscribers.

RBC Capital noted that despite initial stock pressure ahead of the earnings call due to concerns about total placements, da Vinci (EPA:SGEF) 5 system adoption, and procedure volume guidance raised only at the low end, these worries were largely addressed during management’s discussion.

The firm specifically highlighted that the earnings call helped resolve investor concerns regarding the da Vinci 5 adoption and ramp-up timeline, the current hospital spending environment, and the impact of third-party remanufacturers.

RBC expressed continued confidence in Intuitive Surgical’s business outlook, citing the strong second-quarter performance as a key factor in its decision to increase the price target.

In other recent news, Intuitive Surgical reported strong second-quarter results, with revenue reaching $2.44 billion, marking a 21% increase and surpassing consensus estimates by 4%. The company’s adjusted earnings per share were $2.19, a 23% rise that exceeded expectations by over 13%. Bernstein raised its price target for Intuitive Surgical to $685, maintaining an Outperform rating, as the da Vinci 5 surgical system enters a broad launch phase. Meanwhile, Erste Group downgraded Intuitive Surgical from Buy to Hold, citing limited upside potential due to valuation concerns and margin pressure. Stifel reiterated its Buy rating with a $670 price target, highlighting the successful launch of the next-generation DV5 robotic system under new CEO Dave Rosa. Raymond (NSE:RYMD) James also maintained an Outperform rating with a $592 price target, emphasizing the company’s better-than-expected quarterly performance. BTIG increased its price target to $571, continuing a Buy rating, as Intuitive Surgical’s financial results exceeded its estimates.

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