Intuitive Surgical: Favorable Q1 2024 Results and Positive Operational Updates Impress Analysts

Piper Sandler's Adam Maeder raised their price target on Intuitive Surgical (NASDAQ: ISRG) by 2.4% from $425 to $435 on 2024/04/19. The analyst maintained their Strong Buy rating on the stock.

Maeder expressed their enthusiasm for Intuitive Surgical, stating that the company remains their favorite large-cap medtech name. Maeder's comments came in response to Intuitive Surgical's Q1 2024 earnings report, which was released on April 18, 2024.

According to Maeder, Intuitive Surgical's Q1 2024 results exceeded consensus expectations on both the top and bottom lines, leaving little to criticize. The company reported earnings per share (EPS) of $1.50, beating the Zacks Consensus Estimate of $1.40 by 7.1%. Additionally, Intuitive Surgical's EPS for Q1 2024 increased by 22% compared to the same period in 2023. The company's revenue for Q1 2024 was $1.89 billion, surpassing the Zacks Consensus Estimate by 1.6% and registering an 11.2% increase compared to Q1 2023.

During the earnings call, Intuitive Surgical provided positive operational updates, including healthy initial demand for the SP system in Europe and regulatory approval for the Ion system in China. These updates further strengthened Maeder's confidence in the company's prospects.

CEO Gary Guthart expressed satisfaction with the company's performance, stating, "The core measures of our business remained healthy this quarter, as we reached meaningful milestones across several parts of our business." Guthart also highlighted the favorable feedback received for the measured da Vinci 5 launch and the continued adoption of the SP and Ion systems. He emphasized Intuitive Surgical's commitment to improving patient outcomes and delivering on shared goals with customers.

Following Piper Sandler's rating update, other analysts also revised their price targets for Intuitive Surgical on April 19, 2024. Jefferies' David Windley raised their price target by 2.7% to $375, while Baird's Mike Polark lowered theirs by -0.9% to $436. BTIG's Ryan Zimmerman, on the other hand, increased their price target by 2.2% to $421. These updates indicate a range of perspectives on the stock's potential.

Overall, 81.8% of top-rated analysts currently rate Intuitive Surgical as a Strong Buy or Buy, with 18.2% considering it a Hold. Notably, no analysts recommend or strongly recommend selling the stock.

Looking ahead, the consensus forecast among analysts is that Intuitive Surgical will achieve an EPS of $4.99 in the upcoming year. If the analysts' predictions prove accurate, this would represent an 11.6% decrease in EPS on a year-over-year basis.

Since the release of Intuitive Surgical's latest quarterly report on April 18, 2024, the stock price has experienced a 1.7% decline. However, on a year-over-year basis, the stock has gained an impressive 22.7%. These figures demonstrate that Intuitive Surgical has outperformed the S&P 500, which has seen a 19.6% increase during the same period.

Adam Maeder, the Piper Sandler analyst who raised the price target on Intuitive Surgical, is ranked in the top 15% of Wall Street analysts by WallStreetZen. With an average return of 9.2% and a 48.4% win rate, Maeder specializes in the Consumer Cyclical and Healthcare sectors, providing further credibility to their analysis.

Intuitive Surgical, Inc. is a leading developer, manufacturer, and marketer of products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care. The company's flagship product, the da Vinci Surgical System, enables complex surgeries using a minimally invasive approach. Intuitive Surgical also offers the Ion endoluminal system, expanding its commercial offerings into diagnostic procedures. The company's suite of stapling, energy, and core instrumentation supports its surgical systems, while progressive learning pathways assist in utilizing the technology effectively. Intuitive Surgical provides various services, including support, installation, repair, and maintenance, along with integrated digital capabilities that streamline performance for hospitals. Headquartered in Sunnyvale, California, the company was incorporated in 1995.

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