China smartphone shipments slumped in June on inventory overhang: Jefferies
On Wednesday, Raymond (NSE:RYMD) James analyst Jayson Bedford revised the price target for Intuitive Surgical stock (NASDAQ: NASDAQ:ISRG), reducing it to $592 from the previous $688, while maintaining an Outperform rating on the shares. The new target sits within the broader analyst range of $350 to $700, with InvestingPro data showing the stock currently trading at $478.74. The adjustment follows Intuitive Surgical’s first quarter results for 2025, which showcased revenue and earnings per share (EPS) exceeding expectations. With a market capitalization of $171.5 billion and impressive revenue growth of 17.2% over the last twelve months, this performance was largely attributed to a significant increase in the number of procedures using the company’s technology. InvestingPro analysis reveals 13 additional key insights about ISRG’s financial health and valuation metrics.
Despite a slight decline in gross margin by 40 basis points due to a higher mix of revenue from the newer dV5 and Ion systems, Intuitive Surgical demonstrated effective cost management. The company maintains a strong gross profit margin of 67.5% and an excellent financial health score of 3.09 out of 5 according to InvestingPro metrics. The company managed this even with a substantial quarterly increase of over 500 employees. As a result, the operating margin surpassed Raymond James’ forecasts by 180 basis points, contributing an additional $0.12 to the EPS.
Bedford noted that while the fundamental market drivers for Intuitive Surgical remain robust, the company is expected to face some margin pressure in the near term due to the impact of tariffs. However, he anticipates that some of this pressure will be mitigated over time. The analyst emphasized that these tariffs do not alter the long-term margin potential of Intuitive Surgical.
The analyst’s Outperform rating is grounded in Intuitive Surgical’s dominant position within the industry. Bedford believes that this leadership status will continue to drive industry-leading growth for the company. He highlighted the mid-year broad launch of the dV5 system as a key element supporting the company’s market strength and growth trajectory. With a five-year revenue CAGR of 13% and analysts forecasting 15% revenue growth for 2025, the company’s growth momentum remains strong.
In other recent news, Intuitive Surgical reported first-quarter revenues for 2025 of $2.25 billion, marking a 19% increase year-over-year and surpassing consensus estimates. The company’s earnings per share (EPS) rose to $1.81, exceeding expectations. Despite robust revenue growth, system placements fell short of projections, particularly in international markets, due to global capital spending concerns. Analysts from Bernstein, Leerink Partners, BTIG, Jefferies, and Evercore ISI have adjusted their price targets for Intuitive Surgical, reflecting various factors impacting the company, including tariffs and international market conditions.
Bernstein lowered its price target to $675 while maintaining an Outperform rating, citing strong procedure growth and a healthy capital position. Leerink Partners reduced its target to $539, also keeping an Outperform rating, noting higher-than-expected system sales due to the da Vinci (EPA:SGEF) 5 systems. BTIG set a new target of $542 with a Buy rating, emphasizing the strong demand for procedures despite tariff risks. Jefferies decreased its target to $530, maintaining a Hold rating, pointing to anticipated challenges from tariffs and international capital expenditure pressures. Evercore ISI set its price target at $470, with an In Line rating, highlighting the company’s strong revenue growth but acknowledging the shortfall in system placements. These developments reflect the mixed outlook on Intuitive Surgical’s stock performance amid ongoing global economic challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.