CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price to $380 from $355, 51.0x our 2025 EPS estimate, above ISRG’s 10-year historical forward average. We keep our 2024 EPS view at $6.55 and initiate our 2025 EPS view at $7.45. Da Vinci procedures grew by a remarkable 22% Y/Y in 2023, in line with preannounced results on Jan. 9 but slightly above our earlier expectation of 21.5% due to high growth in U.S. general surgeries and cancer procedures internationally. ISRG posted Q4 EPS of $1.60 versus $1.23, a noteworthy +30% Y/Y, exceeding the consensus and our estimate by $0.11, driven by robust worldwide Da Vinci procedure growth of 21% Y/Y during the quarter. Q4 revenues of $1.93B came in line with our expectations, up +17% Y/Y as procedure volume continued to increase, while ISRG was able to charge higher pricing for instruments and pricing. Following the nearly 24% appreciation since we gave our Buy view for ISRG shares in April, we change our view to Hold as we see limited upside potential from current levels.