Intuitive Surgical (ISRG) Solid Quarter Justifies Valuation Premium - Cantor

Cantor Fitzgerald analyst Craig Bijou reiterated an Overweight rating and $620.00 price target on Intuitive Surgical (NASDAQ: ISRG) after the company beat Street Consensus revenue by $67MM ($1,099MM vs. $1,032MM) and EPS by $0.43 ($3.25 vs. $2.87). Procedures were up 17%, 1% above Street expectations, leading the company to raise its 2019 procedure growth guidance for the second time this year to +16-17%, the upper half of its previous range (15-17%). Revenue per procedure moderated slightly, but is still near the highest it has been in at least five years.

The analyst stated "Our $620 price target is based on a 44x P/E multiple on our 2020 EPS estimate. We think the premium relative to peers is justified given its top-line growth profile (double-digit vs. peer median growth in mid-single digits), the building momentum of robotic surgery and a pipeline that can significantly expand its addressable market."

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 $536.57 yesterday.

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