Intuitive Surgical (ISRG) PT Raised to $700 at Piper Jaffray But Risk/Reward Keeps Them Sidelined

Piper Jaffray analyst Matt O'Brien raised his price target on Intuitive Surgical (NASDAQ: ISRG) to $700.00 (from $610.00) following another 'beat and raise' quarter but maintained a Neutral rating citing risk/reward.

O'Brien commented, "This evening, ISRG reported another beat and raise quarter with upside driven by system revenue (more dual counsel placements) and 16% procedure growth. Procedure guidance was raised to a more reasonable 14%-15% (we viewed the previous 12%-14% as overly conservative). The big news in the quarter was significant EPS upside driven by strong gross margins. While we have clearly missed this sizable move in the name this year, the combination of more challenging comps, heightened OPEX spending, and a cash EPS multiple that is now approaching 30x plus for a mid-teens bottom line grower is simply too rich for us and keeps us on the sidelines."

The firm raised FY 2016 EPS from $20.71 to $21.10 and FY 2017 EPS from $23.11 to $23.63.

For an analyst ratings summary and ratings history on Intuitive Surgical click here. For more ratings news on Intuitive Surgical click here.

Shares of Intuitive Surgical closed at $671.90 yesterday.

You May Also Be Interested In

• MarineMax (HZO) PT Lowered to $35 at Stifel
• Amazon.com (AMZN) PT Raised to $215 at UBS
• Macquarie Upgrades ASM Pacific Technology (522:HK) (ASMVY) to Outperform