On Friday, RBC Capital Markets maintained a positive outlook on Intuitive Surgical (NASDAQ:ISRG) shares, reaffirming an Outperform rating and a price target of $641.00. The firm's analysts highlighted the company's strong performance in the fourth quarter of 2024, where it surpassed expectations with a 10% and 24% beat on revenue and earnings per share (EPS), respectively. According to InvestingPro data, the stock is trading near its 52-week high of $616, with analyst targets ranging from $265 to $711.
Intuitive Surgical, known for its da Vinci (EPA:SGEF) surgical systems, ended 2024 on a strong note, with its Q4 procedure volume growing by 18% year-over-year. This metric is particularly significant as it serves as a primary indicator for future system placements. The company's financial health score is rated as "GREAT" on InvestingPro, with impressive revenue growth of ~15% and a robust current ratio of 4.3x.
Looking ahead, the company provided procedure guidance for 2025, projecting a 13-16% year-over-year increase. This forecast aligns with Intuitive Surgical's historical trend of setting conservative initial targets, which are typically raised and refined throughout the year. With 16+ additional ProTips available on InvestingPro, including detailed valuation metrics and growth analysis, investors can gain deeper insights into the company's potential.
The anticipated mid-2025 broad launch of the da Vinci 5 (dV5) system is a focal point for the company's strategy. RBC Capital Markets analysts see this as a key driver for a strong year and the beginning of a multi-year growth period for Intuitive Surgical.
The reaffirmed price target of $641.00 reflects the firm's confidence in Intuitive Surgical's continued success and its ability to capitalize on the opportunities ahead, particularly with the rollout of its next-generation surgical system.
In other recent news, Intuitive Surgical has been the center of attention for several analysts. Piper Sandler increased the price target on Intuitive Surgical shares to $670, maintaining an Overweight rating. This followed Intuitive Surgical's impressive fourth-quarter earnings report, which exceeded consensus expectations for both revenue and earnings. The company also reaffirmed its procedure guidance for the year 2025, projecting a year-over-year increase of 13-16%.
Oppenheimer maintained a Perform rating on the company's stock, despite the company's strong fourth-quarter results and a significant distribution agreement worth €290 million, expected to close by 2026. Bernstein analysts, on the other hand, reaffirmed an Outperform rating for Intuitive Surgical, setting a price target of $700, based on the company's strong financial performance in the last quarter and the company's growth prospects supported by five transformational product cycles.
Truist Securities updated its outlook on Intuitive Surgical, increasing the price target to $666, while maintaining a Buy rating. The firm's analysts believe that Intuitive Surgical is well-positioned to maintain a mid-to-high-teens revenue and profit compound annual growth rate (CAGR) over the next two to three years. Deutsche Bank (ETR:DBKGn) analysts increased the price target for Intuitive Surgical shares to $585, while keeping a Hold rating on the stock, despite the company's strong position in the robotic surgery market.
These recent developments reflect a range of perspectives among analysts, with some expressing optimism about the company's future growth prospects, and others expressing a more cautious outlook due to external pressures and uncertainties.
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