Intuitive Surgical (ISRG) PT Raised to $640 at Truist Securities, Citing 'Elevated Procedure Growth'

Truist Securities analyst Richard Newitter raised the price target on Intuitive Surgical (NASDAQ: ISRG) to $640.00 (from $570.00) while maintaining a Buy rating.

The analyst said: "In large-cap only 5-6 names are in +ve territory this yr with Boston Scientific (BSX, Buy) & Intuitive Surgical (ISRG, Buy) the only outperformers vs. the S&P (up 56% and 62% respectively, vs. 27% for S&P YTD) & driving the lion’s share of the sector’s performance.

Our $640 PT is based on a ~70.7x P/E on our cash-adj. 2026E EPS ([$9.33 - $0.71 interest income = $8.62]) + ~$30 in cash/shr. A ~70.7x P/E multiple would reflect a relative P/E premium vs. the S&P 500 (~3.2x), slightly above the upper-end of ISRG's 3-yr average relative premium range vs. the S&P 500 (~2.5 - 3.1x). It reflects an absolute P/E (~68.6x) above the upper-end of its 3-year avg. as well. We think the stock deserves a premium/multiple more towards the upper-end of its historical range given sustained, elevated procedure growth and a new product cycle now close in-hand (from one of the best innovators in MedTech) which has potential to drive significant rev and EPS growth acceleration and upside vs. our/CNS thinking into the out-years."

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