Intuitive Surgical (ISRG) Bulls Have Reason To Cheer After Strong Quarter

July 23, 2008 12:16 PM EDT

Shares of robotic surgery player Intuitive Surgical, Inc. (Nasdaq: ISRG) are up 16% today after the company reported strong Q2 results and provided a solid outlook. Wall Street was out positive on the stock following the news.

Notable Comments:

- Deutsche Bank bumped its price target from $360 to $365 and reiterated their Buy rating on the stock. DB said better-than-expected da Vinci placements and utilization drove upside in the second quarter and said growth remains robust across surgical specialties. DB also said, "Importantly, the company raised its total procedure growth guidance and revenue forecasts materially—which highlights the fact that da Vinci is increasingly being used outside of prostate." The firm also raised estimates on ISRG.

- Wachovia said ISRG is "Still a Port in the Strong" and they raised thier estimates. Wachovia noted that management lowered their guidance on dVP procedure growth from 40% yoy to 35%-39% yoy, but this was offset by an increase in the guidance for other procedures. The firm has a Market Perform rating and $290-$320 valuation range, saying the stock is fully valued.

- Cowen & Co. raised estimates and reiterated their Outperform rating, noting that new markets are "blooming." Cowen boosted 2008 sales growth est. from 47% to 50% and raised 2008 EPS est. by $0.23 to of $5.18. Cowen noted rapid growth for emerging indications in Uro, GYN and Cardio. Cowen thinks the stock can outpace the market by 25% over the next 12 months.

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• Deutsche Bank
• Wachovia

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