Deutsche downgrades Intuitive Surgical to Sell on I&A segment risk

Deutsche Bank downgraded Intuitive Surgical (ISRG) to Sell from Hold with a price target of $440, down from $515. Encroachment to Intuitive’s Instruments and Accessories segment by remanufactured instruments is inevitable and likely to be increasingly meaningful over the next few years, the analyst tells investors in a research note. The firm expects a growing number of Intuitive’s customers to explore adoption of remanufactured instruments given the potentially significant profitability gains, citing its discussions with multiple robotic surgery programs. Deutsche believes 46% of Intuitive’s U.S. I&A revenues could be at risk of encroachment by third party-remanufactured devices. Its model assumes no material impact in 2026 but steadily increasing headwinds in 2027 and especially 2028. Intuitive Surgical shares are down 3% to $538.00 in premarket trading.