On Friday, Piper Sandler adjusted its outlook on Intuitive Surgical (NASDAQ:ISRG), increasing the price target to $495 from the previous $490 while maintaining an Overweight rating on the stock.
Intuitive Surgical outperformed expectations in its second-quarter results, leading to the revised target. The company's quarterly report showed revenue, procedure growth, and adjusted earnings per share (EPS) that surpassed Wall Street's forecasts.
The analyst highlighted two key achievements in the quarter: the placement of 70 Da Vinci 5 (DV5) systems, which exceeded expectations, and an adjusted operating margin of 37.5%, reflecting strong sales, robust gross margins, and effective cost management.
Intuitive Surgical also updated its full-year 2024 guidance, raising the midpoint of its worldwide procedure growth outlook to a range of 15.5-17.0%, up from the previous forecast of 14.0-17.0%. Additionally, the company improved its gross margin projections and reduced its operating expense targets.
This positive performance and updated guidance are expected to lead to higher estimates for the company's financials. The analyst's revised price target reflects these developments and suggests a positive trajectory for Intuitive Surgical's shares, which are indicated to open higher in the next trading session.
The company's strong quarterly performance and optimistic full-year outlook have contributed to this favorable assessment.
In other recent news, Intuitive Surgical has been in the spotlight following impressive second-quarter results. The company's revenue and earnings per share (EPS) exceeded expectations, driven by a 17% increase in procedures and the placement of 70 da Vinci surgical systems.
Investment firm Baird responded to the strong performance by raising its price target on Intuitive Surgical shares to $503, while maintaining an Outperform rating.
In addition, RBC Capital maintained its Outperform rating and a $475.00 price target for the company. Evercore ISI, however, reduced its price target to $410, but retained an 'In Line' rating. BTIG and Truist Securities both raised their price targets to $469 and $515 respectively, maintaining a Buy rating on the stock.
These recent developments come as the U.S. Food and Drug Administration approved a labeling revision for Intuitive's da Vinci X and Xi surgical systems, indicating comparable survival rates for patients undergoing robotic-assisted radical prostatectomy to those of traditional open surgery.
This decision was based on a study involving nearly 25,000 patients, further solidifying Intuitive Surgical's strong position in the medical technology industry.
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