Intuitive Surgical stock gains as DV5 receives early CE mark approval

Investing.com - Intuitive Surgical (NASDAQ:ISRG), a medical technology giant with a market capitalization of $196 billion and "GREAT" financial health according to InvestingPro, received CE mark approval for its DV5 system in Europe, slightly ahead of management’s year-end 2025 timeline, according to Leerink Partners.

The approval covers both adult and pediatric use for minimally invasive endoscopic procedures across various abdominopelvic surgical procedures, including urologic, gynecologic, general laparoscopic, and thoracoscopic surgeries.

Leerink Partners maintained its Outperform rating and $539.00 price target on Intuitive Surgical following the regulatory milestone.

The research firm described the early approval as "an incremental positive with the potential for greater-than-expected OUS DV5 contribution in 2H25."

Leerink Partners noted that the degree to which the European DV5 launch will drive near-term growth compared to its "strong initial success" in the U.S. market "remains unclear."

In other recent news, Intuitive Surgical has announced a significant increase in its stock repurchase program, planning to buy back up to $4 billion of its own stock, effectively tripling the size of its existing buyback initiative. This move is aimed at enhancing shareholder value and comes alongside the company’s decision to insource the production of surgical drapes, impacting UFP Technologies, which has been a major supplier. Meanwhile, Deutsche Bank (ETR:DBKGn) downgraded Intuitive Surgical’s stock rating from Hold to Sell, adjusting the price target to $440, citing concerns over the company’s market position and performance. Conversely, Erste Group upgraded the stock to Buy, anticipating an improvement in operating margins by 2026 despite current challenges from tariffs on products manufactured in Mexico.

Additionally, Bernstein SocGen Group reaffirmed its Outperform rating for Intuitive Surgical, highlighting the company’s promising product cycle and potential for substantial earnings growth. The analysts noted the company’s unique position with five transformational product launches that could significantly impact its performance. In a leadership update, Intuitive Surgical announced that Dave Rosa will become the new CEO starting July 1, 2025, with current CEO Gary Guthart transitioning to Executive Chair of the Board. This planned succession underscores the company’s strategic direction and commitment to advancing its goals in minimally invasive care.

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