Intuitive Surgical's Next-Gen da Vinci System Expected in 1H 2024, Analysts Say

Stifel Nicolaus's Rick Wise raised their price target on Intuitive Surgical (NASDAQ: ISRG) by 11.1% from $315 to $350 on 2023/11/17. The analyst maintained their Strong Buy rating on the stock.

The upgrade in price target came as a result of Wise having dinner with two robotic surgeons who have performed "thousands of robotic surgeries." According to the analyst, the physicians expressed a strong conviction that Intuitive Surgical may release its next-generation da Vinci system in the first half of 2024. Notably, the improvements in the new system are expected to focus more on software rather than hardware.

While Wise's estimates will remain unchanged until an official announcement is made regarding the new system, they expressed "generally high conviction in robotic surgery's long-term, sustainable growth and the potential for Intuitive Surgical to outperform Stifel Nicolaus's current projections." This conviction has led Wise to increase their price target and valuation multiple.

It is worth noting that 100% of top-rated analysts currently rate ISRG as a Strong Buy or Buy, with no analysts recommending a Hold or selling the stock.

Looking ahead, the consensus forecast among analysts is that Intuitive Surgical's upcoming year will deliver earnings per share (EPS) of $4.5. If these analysts are correct, the company's next yearly EPS will see a 4.2% increase on a year-over-year basis.

In terms of stock performance, since Intuitive Surgical's last quarterly report on September 30, 2023, the stock price has risen by 4%. On a year-over-year basis, the stock is up 15.6%. This performance has outpaced the S&P 500, which has seen a 14% increase during the same period.

Rick Wise, the Stifel Nicolaus analyst behind the recent rating upgrade, is ranked in the top 6% of 4,399 Wall Street analysts by WallStreetZen. With an average return of 10.7% and a win rate of 62.7%, Wise specializes in the Basic Materials and Healthcare sectors.

Intuitive Surgical, Inc. is a company that develops, manufactures, and markets products aimed at enhancing the quality of and access to minimally invasive care. Their flagship product, the da Vinci Surgical System, enables complex surgeries using a minimally invasive approach. The company also offers the Ion endoluminal system, which expands their commercial offerings into diagnostic procedures. Additionally, Intuitive Surgical provides a range of stapling, energy, and core instrumentation for their surgical systems, as well as supportive services and integrated digital capabilities.

Intuitive Surgical, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

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