CFRA Keeps Hold Opinion on Shares of Intuitive Surgical, Inc.

ISRG

Recommendation

Recommendation

380

USD

Target Price

Stars Rank

We maintain our 12-month target price at $380, 51.0x our 2025 EPS estimate, above ISRG’s 10-year historical forward average. We lower our 2024 EPS view to $6.41 from $6.55 and keep our 2025 EPS view at $7.45. ISRG reported Q1 EPS of $1.50 versus $1.23 (+22% Y/Y), exactly in line with our estimate and $0.08 above the S&P Capital IQ consensus view. Q1 revenues of $1.89B (+11% Y/Y) were close to expectations, $80M below our forecast and $20M above consensus. Healthy growth in da Vinci procedures continued globally, up 16% Y/Y and system install base rose by 14% Y/Y to 8,887 systems. In March, ISRG received U.S. FDA clearance for its next-generation robotic surgical system, the da Vinci 5, which includes a number of enhancements compared to the previous versions. We think the news has had a limited impact on the share price so far, as only a limited number were made available to U.S. customers initially. While the launch is expected to first take place in the U.S., we do not expect it to take place during 2024.