CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our 12-month target price to $306 from $395, 47.1x our 2024 EPS estimate, in line with ISRG’s historical forward average. We lift our EPS estimate for 2023 by $0.03 to $5.57 and for 2024 by $0.06 to $6.50. ISRG reported Q3 EPS of $1.46 versus $1.19, exceeding the S&P Capital IQ consensus estimate by $0.04. Results were driven by 19% Y/Y growth in da Vinci procedures globally, despite lower patient backlog than earlier in the year, with outside-U.S. procedures growth of 24% due to strength in India, Germany, the U.K., and Japan. Further, the installed base of da Vinci Systems grew 13% Y/Y and average system utilization expanded 6% in the quarter. We forecast full-year 2023 procedure growth of 21.5%, up 50 basis points from our previous forecast, due to elevated procedure volumes with patients returning to health care, partially offset by the continued slowing of bariatric growth rates in the U.S. due to weight loss drugs (though we note bariatric surgery comprises just 4%-5% of total global procedures).