Weakness in Intuitive Surgical (ISRG) is A Buying Opportunity - Goldman Sachs

April 19, 2013 12:30 PM EDT Send to a Friend
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Price: $411.99 --0%

Rating Summary:
    18 Buy, 6 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Goldman Sachs lowered its price target on Intuitive Surgical (NASDAQ: ISRG) from $712 to $684 but maintained a Buy rating following what is called "solid" Q1 results. The firm sees weakness as a buying opportunity.

While revenue exceeded expectations, procedure growth fell short and led management to revise procedure guidance to the low-end of previous targets, the analyst notes.

"The modest 1Q hysterectomy slowdown looks consistent with trends across MedTech (seasonality, declines in hospital admissions)," analyst David H. Roman comments. "The impact from negative headlines remains unclear and will take time to prove out, but our due diligence suggests this is not material."

Roman said, importantly, the uptake in emerging categories showed no change in trajectory and remains the key driver of our bullish view. The firm said any weakness in the stock would be a buying opportunity, with upcoming catalysts including the annual SAGES conference and the window opening for a $1 billion share repurchase program (4/23/13).

The firm raised FY 2013 EPS estimates from 17.46 to $17.87, FY 2014 EPS from $21.19 to $21.54 and FY 2015 EPS from $25.04 to $25.53.

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 are down 4.9 percent to $469.14.




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