Street Calls of the Week
Investing.com - Truist Securities has raised its price target on Intuitive Surgical (NASDAQ:ISRG) to $620.00 from $525.00 while maintaining a Buy rating on the stock. Currently trading at $538.97, the medical technology giant commands a market capitalization of $193.21 billion, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The upgrade follows Intuitive Surgical’s second consecutive quarter of over 20% revenue and EPS growth, which accelerated compared to the second quarter. The company beat expectations on nearly all key metrics, including system placements, procedures, utilization, margins, and earnings per share. Financial data from InvestingPro shows impressive fundamentals, with a robust gross profit margin of 66.61% and a strong current ratio of 5.17, indicating excellent financial health.
Truist Securities highlighted that system outperformance was complemented by acceleration in both U.S. and worldwide utilization rates. The firm noted this was particularly significant as procedure growth exceeding installed base growth serves as a positive forward volume indicator.
The research firm expressed confidence in Intuitive’s Ion and SP platforms, noting that new SP indications were recently submitted for regulatory approval. The firm also observed that procedures using the company’s D5 system continued to increase quarter over quarter.
Truist Securities believes Intuitive Surgical is well-positioned to maintain its innovation leadership in what it describes as a large, underpenetrated robotic total addressable market, with significant earnings power to sustain above-peer EPS growth. For deeper insights into ISRG’s valuation and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Intuitive Surgical reported strong third-quarter financial results, with revenue reaching $2.505 billion, marking a 22.9% year-over-year growth. The company’s adjusted earnings per share were reported at $2.40, exceeding BTIG’s estimates. Analysts have responded positively to these results, with Piper Sandler, Leerink Partners, BTIG, RBC Capital, and Evercore ISI all raising their price targets for the company. Piper Sandler increased its target to $610, while Leerink Partners set theirs at $600, both maintaining positive ratings. BTIG raised its target to $589, noting the company’s performance exceeded their projections. RBC Capital adjusted their target to $625, highlighting that sales and earnings per share surpassed forecasts by 4% and 20%, respectively. Evercore ISI also increased their price target to $540, citing across-the-board strong performance and acceleration in system placements and procedures. These developments reflect strong investor confidence in Intuitive Surgical’s future growth.
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