Cowen Says Intuitive Surgical (ISRG) Price Decline Not Justified
Tweet
Share
E-mailGet Alerts ISRG Hot Sheet
Price: $407.12 +0.08%
Rating Summary:
32 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 60
Rating Summary:
32 Buy, 9 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 60
Join SI Premium – FREE
CONTRIBUTOR http://notablecalls.blogspot.com
Cowen notes shares of Intuitive Surgical (NASDAQ: ISRG) have declined significantly, falling by 18% in the past month. A combination of real and imagined events seems to have engendered fears of slower growth or lower earnings power. Firm believes that the price decline is not justified as business fundamentals are strong and likely to remain vigorous, contrary to trepidation about 2007 guidance. The threat from a recent patent suit is negligible. They maintain their positive stance on Intuitive and reiterate Outperform rating with expectations for the shares to outperform the market by 40% - 45% in the next 12 months.
Recent news accounts imply healthy sales trends for Intuitive Surgical, with unabating demand for prostatectomies, hysterectomies and new da Vinci surgical system placements in hospitals. Rising use for gastric bypass procedures to treat morbid obesity is also occurring, representing another source of growth as nearly 200,000 obesity surgeries are performed annually in the U.S. Hospitals view the system as a means for boosting competitive advantage and are publicizing new da Vinci system purchases in order to attract (or retain) patients.
Firm believes that system sales for the seasonally strong 4Q will again prove to be significantly higher than 3Q and note that in 2004 and 2005, 4Q systems sales rose by 7 and 9 units, respectively. Sales and earnings guidance for 2007 should be issued on February 1 when Intuitive reports 4Q results. Cowen believes that fears of guidance being below Street expectations are unwarranted based upon their observations of the market evolution and clinical progress for the da Vinci system.
The current forward P/E of 33x for shares of Intuitive is their lowest valuation in 3 years.
Notablecalls: Love the call but I suspect the bounce I was looking for 3 days ago (see archives) already happened yesterday. On the other hand, ISRG is a huge mover and Cowen's call is brilliant enough to turn heads. I'm going to call this one actionable after all.
For more calls go to http://notablecalls.blogspot.com
Cowen notes shares of Intuitive Surgical (NASDAQ: ISRG) have declined significantly, falling by 18% in the past month. A combination of real and imagined events seems to have engendered fears of slower growth or lower earnings power. Firm believes that the price decline is not justified as business fundamentals are strong and likely to remain vigorous, contrary to trepidation about 2007 guidance. The threat from a recent patent suit is negligible. They maintain their positive stance on Intuitive and reiterate Outperform rating with expectations for the shares to outperform the market by 40% - 45% in the next 12 months.
Recent news accounts imply healthy sales trends for Intuitive Surgical, with unabating demand for prostatectomies, hysterectomies and new da Vinci surgical system placements in hospitals. Rising use for gastric bypass procedures to treat morbid obesity is also occurring, representing another source of growth as nearly 200,000 obesity surgeries are performed annually in the U.S. Hospitals view the system as a means for boosting competitive advantage and are publicizing new da Vinci system purchases in order to attract (or retain) patients.
Firm believes that system sales for the seasonally strong 4Q will again prove to be significantly higher than 3Q and note that in 2004 and 2005, 4Q systems sales rose by 7 and 9 units, respectively. Sales and earnings guidance for 2007 should be issued on February 1 when Intuitive reports 4Q results. Cowen believes that fears of guidance being below Street expectations are unwarranted based upon their observations of the market evolution and clinical progress for the da Vinci system.
The current forward P/E of 33x for shares of Intuitive is their lowest valuation in 3 years.
Notablecalls: Love the call but I suspect the bounce I was looking for 3 days ago (see archives) already happened yesterday. On the other hand, ISRG is a huge mover and Cowen's call is brilliant enough to turn heads. I'm going to call this one actionable after all.
For more calls go to http://notablecalls.blogspot.com
You May Also Be Interested In
- Intuitive Surgical (ISRG) PT Lowered to $520 at TD Cowen
- Agenus Inc. (AGEN) PT Raised to $30 at H.C. Wainwright
- Primoris Services Corporation (PRIM) PT Lowered to $172 at Needham, Remains on Conviction List
Create E-mail Alert Related Categories
Analyst Comments, ContributorsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
