Intuitive Surgical (ISRG) PT Raised to $750 at Canaccord Genuity; 'Hitting on All Cylinders'

Canaccord Genuity analyst Jason Mills reiterated a Buy rating and lifted his price target on Intuitive Surgical (NASDAQ: ISRG) to $750.00 (from $700.00) following strong results. Mills said the company is hitting on all cylinders and riding a tailwind with multiple levers still to pull.

Mills commented, "Viva la Robolucion! We made this proclamation coming out of the SAGES conference in March, repeated it after robust Q1 results, and reiterate it after the firm’s blowout Q2 print. We expect the stock to trade materially higher, as we are increasingly confident robotic-assisted surgery devices (RASD) are in the midst of a multi-year utilization uptrend in the general surgery realm, as more surgeons seek to expand their competencies and broaden their practice beyond conventional MIS techniques. What’s more, the firm’s cash balance increased over $400M to $4.2B, and management seemed more inclined than ever to put this hoard to work (we think technology investments-acquisitions and dividends are more probable than ever, which could augment growth and attract new investors, respectively). Near term, we expect to continue to see strong uptake of da Vinci robotic surgery in hernia, colectomy, rectal resection, and thoracic procedures. Together with new important, concomitant technologies (e.g. 30mm stapler, table motion software, vessel sealer) that increase the utility and performance of da Vinci even further (into higher ASP/margin procedures like colorectal and thoracic no less), we think ISRG can continue to produce double-digit procedure growth through 2017 at least. On the new technology front, management gave new details on the single port (Sp) robotic platform and new imaging technologies to augment our bullishness about the long-term growth opportunities for ISRG. We reiterate our BUY rating and raise our target to $750 from $700."

FY 2016 EPS was raised from $20.27 to $$21.48 and FY 2017 EPS from $22.97 to $24.33.

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 $671.90 yesterday.

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