Intuitive Surgical’s Strong Market Position and Future Prospects Justify Buy Rating Despite Remanufacturing Concerns

William Blair analyst Brandon Vazquez has maintained their bullish stance on ISRG stock, giving a Buy rating yesterday.

Brandon Vazquez has given his Buy rating due to a combination of factors surrounding Intuitive Surgical’s current market position and future prospects. Despite recent concerns about remanufactured instruments potentially impacting growth, Vazquez believes that the limited availability of FDA-cleared remanufactured instruments and the absence of third-party verification participation will likely restrict their widespread adoption.
Vazquez also notes that hospitals may be hesitant to operate outside Intuitive Surgical’s ecosystem due to the high costs and risks associated with robotics programs. This cautious approach by hospitals could mitigate the impact of remanufacturing concerns on Intuitive Surgical’s business. Consequently, Vazquez maintains a positive outlook on the company’s stock, suggesting that while there are risks to monitor, the overall fundamentals remain strong enough to support a Buy rating.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $650.00 price target.