Travis Steed, an analyst from Bank of America Securities, maintained the Buy rating on Intuitive Surgical (ISRG – Research Report). The associated price target is $650.00.
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Travis Steed has given his Buy rating due to a combination of factors that suggest Intuitive Surgical’s stock has potential for growth despite certain risks. One of the primary concerns is the risk associated with the reprocessing of instruments, particularly after Restore Robotics received clearance for reprocessed Da Vinci Xi Monopolar Scissors. However, Steed believes this risk is not significant enough to alter the investment thesis, as the adoption of reprocessed instruments is expected to be slow and not impactful in the near term.
Moreover, Steed highlights that Intuitive Surgical has strategies to protect its revenue streams, such as leveraging its technological capabilities and strong relationships with clinicians to encourage the use of its own instruments. The company has also extended the life of some of its instruments, which could help in expanding its total available market. Additionally, Intuitive Surgical’s investment in manufacturing scale and its ability to offer competitive pricing could further support its growth, especially as international expansion becomes more crucial. These factors contribute to Steed’s confidence in maintaining a Buy rating for Intuitive Surgical.
Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Intuitive Surgical, and Zimmer Biomet Holdings. According to TipRanks, Steed has an average return of 8.2% and a 62.27% success rate on recommended stocks.
In another report released yesterday, Barclays also reiterated a Buy rating on the stock with a $635.00 price target.