Intuitive Surgical Analysts Mixed After Earnings Report

In the wake of Intuitive Surgical's stronger-than-expected earnings report, UBS cut its share-price target, SVB Leerink cut its rating but lifted its price target, and Stifel boosted its price target.
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Intuitive Surgical  (ISRG) - Get Report shares rose as analysts took mixed actions on the surgical-device maker’s stock after it reported stronger-than-expected first-quarter earnings.

The Sunnyvale, Calif., company's adjusted earnings per share totaled $2.69, up from $2.61 in the year-earlier quarter. The latest figure beat analysts’ forecasts of $2.64, according to FactSet.

GAAP net income rose to $313.5 million, or $2.62 a share, from $306.5 million, or $2.56, a year earlier.

Revenue climbed to $1.1 billion from $973.7 million a year earlier. Analysts’ consensus for the latest quarter was $1.05 billion.

The maker of the da Vinci Surgical System benefited from a rise in procedures and system placements and in service and operating-lease income.

The number of installed daVinci systems totaled 5,669 as of March 31, up 11% from a year earlier.

As for analysts, UBS cut its share-price target for Intuitive to $565 from $620, maintaining a neutral rating, Bloomberg reports.

SVB Leerink analyst Richard Newitter dropped his rating to market perform from outperform. But he raised his share-price target by 4.8% to $535, Bloomberg reports.

And Stifel analyst Rick Wise boosted his price target to $575 from $425, maintaining his buy rating, The Fly reports.

Hospital demand for capital purchases, including robotics, could languish, he said. But Wise increased his projection for procedure volume to a drop of 21% for 2020 from his prior prediction of a 27% fall.

Intuitive's stock recently traded at $506.51, off 0.8%, compared to a 1.7% gain for the S&P 500. Intuitive shares have slid 15% over the past three months, compared with a 16% drop for the S&P 500.