Analyst Patrick Wood from Morgan Stanley maintained a Buy rating on Intuitive Surgical (ISRG – Research Report) and keeping the price target at $650.00.
Patrick Wood has given his Buy rating due to a combination of factors that suggest a positive outlook for Intuitive Surgical. A recent FDA notice indicated that there were approximately 439 Dv5 systems in commerce, which, despite being a complex calculation, suggests a potential placement rate of around 175 systems in the first quarter. This figure, although challenging to pin down precisely, is significant given the current market concerns about capital expenditures in the healthcare sector.
Wood believes that if the estimated 175 placements are accurate, it would be a favorable outcome for Intuitive Surgical, especially considering the stock’s recent decline of over 19% due to market rotation and hospital capital expenditure fears. Historically, system placements in the first quarter tend to decrease by 20-30% compared to the fourth quarter, so maintaining a flat placement rate would be a strong performance. The Dv5 system’s lifecycle position suggests it should perform better than average, providing some reassurance to investors amidst the current uncertainties.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $600.00 price target.
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