Jefferies 'Firmly' Maintains its Buy on Intuitive Surgical (ISRG) Despite Margin Pressures

Jefferies analyst Imron Zafar lowered estimates on Intuitive Surgical (NASDAQ: ISRG) amid margin pressure following Q1 results but "firmly" maintained its Buy rating and $616 price target on long-term growth prospects.

Zafar commented, "1Q highlights: (1) 13% procedure growth matched our Street-high forecast and substantially outperformed consensus of +9%, reflecting strength in general surgery and international coupled with dVP/dVH stabilization; (2) upped procedure guidance signals sustainability of this momentum; (3) continued Xi adoption; (4) FX and mix weighing on GM. NT margin pressures notwithstanding, LT growth prospects for robotic surgery remain compelling and keep us firmly at Buy."

The firm cut FY 2015 EPS from $17.70 to $16.61 and FY 2016 EPS from $21.19 to $20.47.

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 $546.73 yesterday.

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