Intuitive Surgical Receives Price Target Increase After Strong Q1 Earnings

Jefferies's David Windley raised their price target on Intuitive Surgical (NASDAQ: ISRG) by 2.7% from $365 to $375 on April 19, 2024. The analyst maintained their Hold rating on the stock.

Windley's price target increase came in response to Intuitive Surgical's first-quarter 2024 earnings report, which was released on April 18, 2024. The company delivered a "solid start to the year" with a quarterly beat and raised procedure growth guidance. Windley noted that Jefferies responded to the positive earnings report by increasing its estimates.

Intuitive Surgical reported earnings per share (EPS) of $1.50 for Q1 2024, surpassing the Zacks Consensus Estimate of $1.40 and showing a 22% increase compared to Q1 2023's $1.23. The company also reported revenue of $1.89 billion, beating the Zacks Consensus Estimate by 1.6% and showing an 11.2% increase compared to Q1 2023's $1.7 billion.

CEO Gary Guthart expressed satisfaction with the company's performance, stating that the core measures of their business remained healthy and they reached significant milestones across several parts of their operations. Guthart also highlighted the positive feedback from the launch of their measured da Vinci 5 product and the continued adoption of SP and Ion. He emphasized the company's focus on improving patient outcomes and delivering on shared goals with customers.

In addition to Jefferies, other analysts also updated their ratings and price targets for Intuitive Surgical on April 19, 2024. Baird's Mike Polark lowered their price target by -0.9% to $436 but maintained their Buy rating on the stock. BTIG's Ryan Zimmerman raised their price target by 2.2% to $421 and maintained their Strong Buy rating. Piper Sandler's Adam Maeder raised their price target by 2.4% to $435 and also maintained their Strong Buy rating.

Currently, 80% of top-rated analysts view Intuitive Surgical as a Strong Buy or Buy, while 20% consider it a Hold. None of the analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Intuitive Surgical's upcoming year will deliver earnings per share (EPS) of $4.99. If the analysts are correct, this would represent an 11.6% decrease in EPS on a year-over-year basis.

Since Intuitive Surgical's latest quarterly report on April 18, 2024, the stock price has increased by 1.2%. Year-over-year, the stock has seen a significant rise of 25.5%. During this period, Intuitive Surgical has outperformed the S&P 500, which has increased by 22.6%.

David Windley, the Jefferies analyst who raised the price target on Intuitive Surgical, is ranked in the top 11% of Wall Street analysts by WallStreetZen. With an average return of 13.9% and a 56.9% win rate, Windley specializes in the Healthcare sector.

Intuitive Surgical, Inc. is a company that develops, manufactures, and markets products to enhance the quality of and access to minimally invasive care. Their flagship product, the da Vinci Surgical System, enables complex surgery using a minimally invasive approach. They also offer the Ion endoluminal system for diagnostic procedures and a range of stapling, energy, and core instrumentation for their surgical systems. The company provides services such as support, installation, repair, and maintenance, as well as integrated digital capabilities to streamline performance for hospitals. Intuitive Surgical was incorporated in 1995 and is headquartered in Sunnyvale, California.

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