Tuesday, Piper Sandler adjusted its price target on shares of Intuitive Surgical (NASDAQ:ISRG) to $490 from $435, while maintaining an Overweight rating on the stock. The firm's analyst cited evidence of strong placement numbers for the company's da Vinci 5 (DV5) surgical robot since its U.S. launch, suggesting a positive outlook for the company's financial performance in the coming years.
The analyst's assessment is based on monitoring social media for indications of DV5 robot placements. The findings suggest at least 40 placements have been made, a number which is believed to be lower than the actual figure. The initial forecast for fiscal year 2024 was 68 DV5 systems, but the analyst now anticipates that the number of systems could surpass 100 within the year.
Despite some social media posts hinting at a cap of 100 providers for the initial launch phase of the DV5, the analyst considers this unlikely. The current analysis indicates that the U.S. launch of the DV5 robot has had a promising start, which is expected to contribute to strong financial results for Intuitive Surgical in 2025 and 2026.
The raised price target reflects the analyst's confidence in the company's growth trajectory following the deployment of the DV5 systems. Intuitive Surgical's progress with the DV5 launch appears to be on track to exceed initial expectations, potentially leading to a robust financial outlook for the medical device maker.
In other recent news, Intuitive Surgical has been in the spotlight with several key developments. The U.S. Food and Drug Administration (FDA) approved a labeling revision for Intuitive's da Vinci X and Xi surgical systems, signifying that survival rates for patients undergoing robotic-assisted radical prostatectomy are on par with traditional open surgery. This decision was based on a study involving nearly 25,000 patients between 2007 and 2014.
Furthermore, Goldman Sachs initiated coverage on Intuitive Surgical shares with a Buy rating and a price target of $500.00, emphasizing the potential growth due to increased penetration of robotic-assisted surgery. The firm projects approximately 20% growth in earnings per share (EPS) through 2028.
Meanwhile, Piper Sandler maintained its Overweight rating and $435.00 price target on Intuitive Surgical, following a visit to the company's facility in Oxford, England. The firm also adjusted its price target for Intuitive to $435 from the previous $425, after the company's first-quarter earnings exceeded consensus estimates on both revenue and EPS.
Lastly, Jefferies maintained a Hold rating on Intuitive Surgical but increased the stock price target to $375 from $365, following the company's announcement of its first-quarter financial results for 2024, which showed revenues of $1.89 billion, a growth of 11% compared to consensus estimates.
InvestingPro Insights
As Intuitive Surgical (NASDAQ:ISRG) garners attention with its DV5 surgical robot placements, real-time data from InvestingPro bolsters the optimistic outlook. With a market capitalization of $157.68 billion and a robust revenue growth of 13.81% in the last twelve months as of Q1 2024, the company's financial health appears strong. The InvestingPro Tips highlight that Intuitive Surgical is trading at a high earnings multiple, with a P/E ratio of 78.58, and a Price/Book ratio of 11.29, signaling investor confidence in the company's value and growth potential. Additionally, the stock's low volatility and the fact that liquid assets exceed short-term obligations provide a reassuring sign of stability.
For readers looking to delve deeper into Intuitive Surgical's financials and stock performance, there are additional InvestingPro Tips available, which can be accessed through the dedicated portal for Intuitive Surgical at https://www.investing.com/pro/ISRG. These tips include insights on valuation multiples, profitability predictions, and historical returns. Interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which provides access to a total of 15 InvestingPro Tips for a comprehensive analysis of the company's outlook.
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