On Friday, Bernstein SocGen Group adjusted its price target for shares of Intuitive Surgical (NASDAQ:ISRG), increasing it to $650.00 from the previous $585.00, while keeping an Outperform rating on the stock.
The new target represents potential upside from the current price of $544.72, with the stock already showing impressive momentum, having gained over 61% year-to-date according to InvestingPro data. This enhancement comes following a virtual fireside chat held on December 5th with Intuitive's CFO Jamie Samath and Brandon Lamm from Investor Relations.
During the event, several topics were discussed, including the company's macroeconomic outlook, trends in procedures, progress on the launch of the dV5 surgical system, and feedback on its new features.
Other subjects included the strategy for refurbished Xi robots, the competitive landscape, Ion system acceleration, SP system indication expansion, and innovation in imaging. With a market capitalization of $194.21 billion and strong revenue growth of 14.83% in the last twelve months, Intuitive Surgical maintains its position as a leader in the medical devices sector.
Bernstein's analyst highlighted Intuitive Surgical's continued status as a compelling long-term growth story within their coverage. The firm's confidence in Intuitive is reflected in the increased price target, which is now based on a price-to-earnings (P/E) multiple of 70 times. This is an uptick from the previous multiple of 66, indicating an improved growth outlook for the company.
The revised price target also takes into account an anticipated fiscal year 2026 earnings per share (EPS) of $9.32. This forecast is an increment from the earlier target that used an EPS estimate of $8.91, spanning from the fourth quarter of 2025 to the third quarter of 2026.
InvestingPro analysis indicates that ISRG is currently trading above its Fair Value, with a P/E ratio of 86.12. For deeper insights into ISRG's valuation and 15+ additional ProTips, subscribers can access the comprehensive Pro Research Report.
The discussion also touched on various risks and opportunities for Intuitive Surgical, including potential political risks such as tariffs, the impact of GLP-1, and the company's digital platforms. Bernstein's positive outlook on Intuitive Surgical is underpinned by expectations of the company's performance and strategic initiatives through to the year 2025.
In other recent news, Intuitive Surgical has seen several positive developments. Morgan Stanley (NYSE:MS) upgraded the company's shares from Equalweight to Overweight, citing optimism about the company's long-term prospects in the healthcare robotics sector.
Moreover, Erste Group revised its rating from Hold to Buy, predicting double-digit percentage growth rates in both sales and profits for 2024 and 2025. Piper Sandler, RBC Capital Markets, and Mizuho (NYSE:MFG) Securities have also raised their price targets following the company's strong earnings report.
The company reported a 17% year-over-year increase in revenue, reaching $2 billion in the third quarter, driven by an 18% rise in DaVinci procedures and robust system placements. Intuitive Surgical also adjusted its full-year 2024 procedure growth forecast to a range of 16% to 17%.
Despite pricing pressures in China, Intuitive Surgical is preparing for a broad launch of DaVinci 5 by mid-2025 and plans to expand the Ion system internationally, especially in China and Europe. These are some of the recent developments for the company.
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