Intuitive Surgical Inc (ISRG)experienced strong growth over the past year, outperforming the S&P 500 and rising by approximately 39.6% compared to the S&P’s gain of about 28.6%. Hedge funds were actively buying the stock in the first quarter, and it reached a ranking of three on the WhaleWisdom Heat Map.
Intuitive Surgical develops, manufactures, and markets robotic products, systems, and other medical instruments to improve surgical outcomes. Intuitive’s da Vinci Surgical System was one of the first robotic-assisted, minimally invasive surgical systems. Its Ion endoluminal system offers a platform for minimally invasive lung biopsies. Intuitive Surgical has had steady growth over the past years as it continues to innovate and catch the attention of investors.
Hedge Funds Are Buying
Hedge Funds were actively buying the stock in the first quarter. The aggregate 13F shares held by hedge funds increased to approximately 21.67 million from 21.66 million, a mild increase of about 0.05%. Overall, 27 created new positions for hedge funds, 94 added to an existing holding, 17 exited, and 58 reduced their stakes. In contrast, Institutions decreased their aggregate holdings by about 2.8% to 98.8 million from 101.6 million.
Analysts expect to see revenue grow consistently from 2020 through to 2022, with estimates of approximately $5.3 billion by December 2021 and $6.1 billion by 2022. Earnings estimates are also optimistic, with year-over-year estimated increases that would bring earnings to $15.79 per share in 2022, up from $13.43 in 2021.
Analysts Confidently Raise Targets
Analysts show enthusiasm for Intuitive Surgical by raising price targets. Lawrence Biegelsen from Wells Fargo Bank, N.A. raised Intuitive Surgical’s price target to an impressive $892 from $879 and kept an Overweight rating. SVB Leerink analyst Richard Newitter viewed the company as an asset in medical technology and raised its firm’s price target to $860 from $825, maintaining a Market Perform rating on the shares. Deutsche Bank raised the firm’s price target on Intuitive Surgical to $825 from $690, keeping a Hold rating on the shares. Baird & Co. analyst Mike Polark upgraded the shares to Outperform from Neutral and set a $925 price target. Polark referenced Intuitive Surgical’s innovation and recent shipment of close to 300 da Vinci Surgical Systems in the first quarter, a 26% increase from the prior-year period.
Intuitive Surgical’s impressive growth is encouraging for investors. This medical technology company continues to push forward as a leader in minimally invasive care and robotic-assisted surgery. Analysts’ enthusiastic price targets and multi-year estimates speak to the opportunity for investors.