BTIG analyst Ryan Zimmerman lowered the price target on Intuitive Surgical (NASDAQ: ISRG) to $542.00 (from $560.00) while maintaining a Buy rating.

The analyst comments "We maintain our Buy rating but lower our PT to $542 (from $560) following 1Q25 results. ISRG reported revenue of $2.253B (19.2% Y/Y) and adj. EPS of $1.81 vs. BTIG/Cons. ests. of $2.209B/$2.185B and adj. EPS of $1.75/$1.74 as procedure growth exceeded the Street by ~240bps as Systems fell short by 40 units. Dv5 adoption was solid at 147 units but OUS capital demand has (and is) softening. The big question going into results was how ISRG will fare in the face of tariffs (our initial est. here). Mgmt. spent the bulk of the call outlining ISRG's impact which boils down to ~170bps to GMs in FY25. While ISRG is baking in the full impact of tariffs (as they know it today) they are assuming zero improvements in tariffs or any contribution from mitigation strategies (largely from improved manufacturing efficiencies and not price increases). We believe any improvement in US-China trade dynamics would have an outsize positive impact on shares. Further, with shares down ~21.3% since the last earnings call, investors have been selling from increased tariff risk (which is now arguably sized up), a worsening capex environment, and reduced demand in China; essentially accounting for only the bad. The fact remains that procedure demand is healthy, ISRG is taking up procedure guidance (+150bps) as a sign of confidence, and is seeing steady utilization increases across all key platforms."