Intuitive Surgical (ISRG) Stock Forecast & Price Target

Intuitive Surgical's stock has experienced significant growth, with shares rising 80% since the beginning of 2024, significantly outperforming the S&P 500's 28% increase during the same period. The company has reported robust financial performance, posting revenues of $2.41 billion, representing a 25% year-over-year increase, alongside an 18% growth in da Vinci procedures. This positive trend is supported by expanding indications, increasing utilization of existing systems, and ongoing innovations, positioning Intuitive Surgical favorably within a large and rapidly growing robotic minimally invasive surgery market.

Intuitive Surgical is facing a challenging outlook due to lower-than-expected gross margin guidance for FY '25, which falls below company estimates, compounded by a decline in adjusted bariatrics volumes and subdued procedure growth in China. The financial analyst notes that macroeconomic uncertainty is adversely impacting hospital capital budgets, leading to delays in robotic system purchases, alongside resistance to adopting robotic solutions in emerging markets and extended rollouts for new technology platforms. Additionally, the company's relative P/E premium has decreased, reflecting a market contraction and raising concerns about future profitability amid these operational difficulties.