On Tuesday, BTIG maintained a Buy rating on Intuitive Surgical (NASDAQ:ISRG) with a steadfast stock price target of $421.00. The firm's assessment follows Intuitive Surgical's announcement approximately three months ago regarding the FDA clearance and the commencement of the DV5 system's deployment.
BTIG's approach to gauge the system's market penetration involved an unconventional method; they tasked a summer intern to scour social media for evidence of the new system's presence in U.S. hospitals.
The DV5 system, a recent addition to Intuitive Surgical's product lineup, had recorded eight placements by the end of the first quarter. BTIG's unique research method identified the DV5 system in 23 different hospitals, with a notable concentration of eight hospitals in Texas.
The initial findings suggest that the system is predominantly being utilized by specialists in general surgery and bariatrics, with a smaller presence in urology and gynecology. Still, BTIG clarified that the distribution of social media posts might not accurately reflect the overall trend in the system's adoption.
BTIG also pointed out that Intuitive Surgical is currently offering the DV5 system selectively to those users who participated in the initial study. This strategy is part of the early launch phase, which is expected to gradually widen as the company progresses with the system's rollout.
In summary, BTIG's report indicates that Intuitive Surgical is on a positive trajectory with the introduction of the DV5 system into the market. The firm's continued endorsement of a $421.00 price target reflects confidence in the ongoing adoption and future potential of the new system.
In other recent news, Intuitive Surgical has been in the spotlight due to several noteworthy developments. The U.S. Food and Drug Administration (FDA) approved a labeling revision for Intuitive's da Vinci X and Xi surgical systems, indicating comparable survival rates for patients undergoing robotic-assisted radical prostatectomy and traditional open surgery. This approval, based on a study of nearly 25,000 patients, is a significant milestone for the company.
Furthermore, Goldman Sachs (NYSE:GS) initiated coverage on shares of Intuitive Surgical with a Buy rating and a price target of $500.00, citing the potential for increased penetration of robotic-assisted surgery and advancements in next-generation products. The firm also 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. The firm's stance is based on the company's strong position in the market and its potential for continued innovation and expansion in the field of robotic-assisted surgery.
Moreover, Intuitive Surgical's first-quarter earnings exceeded consensus estimates on both revenue and earnings per share. The company's latest report revealed an upward revision in its 2024 procedure growth forecast, now expected to grow by 14-17% year-over-year.
Finally, Jefferies maintained a Hold rating on Intuitive Surgical but increased the stock price target to $375 from $365 following the company's strong first-quarter financial results. The company's earnings per share (EPS) exceeded expectations at $1.50, representing a 22% increase over the predicted $1.42.
InvestingPro Insights
As Intuitive Surgical (NASDAQ:ISRG) continues to make strides with its DV5 system, the company's financial and market metrics provide additional context for investors. According to InvestingPro data, Intuitive Surgical boasts a robust market capitalization of $148.66 billion, reflecting significant investor confidence. The company's revenue growth remains healthy, with a 13.81% increase in the last twelve months as of Q1 2024, and a 11.46% quarterly growth in Q1 2024, indicating sustained business expansion.
InvestingPro Tips suggest a cautious approach for potential investors; analysts have revised their earnings downwards for the upcoming period, and the stock is currently trading at a high P/E ratio of 74.19, which is slightly above the adjusted P/E ratio for the last twelve months as of Q1 2024. Moreover, the company's stock is near its 52-week high, trading at 99.7% of this peak, which may signal a need for careful consideration of entry points for new investors.
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