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Research Alert: CFRA Maintains Hold Opinion On Shares Of Intuitive Surgical, Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Intuitive Surgical, Inc.
Mar 21, 2025 1:12 PM

03:50 PM EDT, 03/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target price to $538 from $654 based on recent market movements, reflecting a 66.8x multiple of our 2025 EPS estimate, a premium to peers due to a higher forecasted return on invested capital (22% in 2025 vs. peer median of 12%). We raise our 2025 EPS forecast by $0.06 to $8.06 and widen 2026 estimate by $0.01 to $9.47. We expect sales to grow 15% Y/Y in 2025 and 16% in 2026, following 17% rise in 2024. Sales likely to be driven by robust procedure growth, primarily in U.S. general surgery and international procedures. Further, capital sales likely will be driven by procedure demand, catalyzing hospitals to establish or expand robotic system capacity. We forecast da Vinci procedures to grow in the 13%-16% range in 2025, slightly softer than 2024 when da Vinci 5 got U.S. FDA clearance. We view tariffs by the current U.S. admin. as a new risk on the cost side given a "significant majority" of ISRG's instruments are made in Mexico, per the company's 10-K and earnings release disclosures.

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