Intuitive Surgical, Inc. Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for Intuitive Surgical, Inc. (ISRG).

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Give me a comprehensive price target analysis for Intuitive Surgical, Inc. (ISRG).

Executive Summary

Intuitive Surgical (ISRG) exhibits strong technical and fundamental health, with current momentum supported by consistent EPS growth and positive analyst outlooks. The stock's current trading near $470 presents a compelling opportunity relative to the median analyst price target of $595. Short-term volatility might be observed due to RSI and MACD signals, but long-term prospects remain robust given innovations in robotic surgery and favorable industry trends.

Fundamental Analysis

  • Valuation Metrics: P/E at ~66 and Price-to-Book around 9.44 indicate the stock is trading at a premium, justified by high margins and growth outlook.
  • Financial Health: Robust cash position (~$5.3B) and no long-term debt support operational resilience.
  • Profitability: Gross margins (~66.6%) and operating margins (~30.5%) reflect strong efficiency.

Earnings Analysis

  • Recent Performance: Steady EBITDA and net income, with recent EPS of 1.81 (trailing) and projected upward trends.
  • EPS Trends: EPS has gradually increased over the periods, from ~1.46 to ~1.99, indicating positive earnings momentum.
  • EPS Revisions: Dense upward revisions (+1 to +23 over periods) signal strong analyst confidence.
  • Earnings Quality: Sustained revenue growth, high profit margins, and consistent EBITDA align with high earnings quality.

Technical Analysis

  • Current Price Action: Trading slightly below recent peaks, with the 50-day MA around 514-519 showing a positive trend.
  • Indicators: RSI (~37) suggests room for upward movement; MACD indicates recent bullish momentum transitioning from bearish signals.
  • Support/Resistance Levels: Current support near 470-480, with resistance around 530-540.

Analyst Consensus & Price Targets

  • Current Targets: Range from $350 (low) to $685 (high), with a median at $595.
  • Coverage: 27 analysts, predominantly optimistic.
  • Catalysts: Advances in robotic surgery, expansion into new markets, and ongoing innovation.

Price Target Analysis

  • Short-Term (3 months): Expect potential consolidation with the current target range seeing upward bias driven by positive earnings momentum.
  • Mid-Term (12 months): Price targets indicate a 25-50% upside, supported by earnings growth and industry tailwinds.
  • Long-Term (3+ years): Headwinds include high valuation, but sustained innovation and market expansion could justify targets near $685, reflecting a strong growth trajectory.

Visual Price Targets

  • The horizontal lines denote the key price targets extending 30 days into the future:
    • Low: $350 (support level)
    • Median: $595 (central reference point)
    • High: $685 (long-term bullish target)

These levels serve as critical markers for anticipated support and resistance, framing our investment horizon.

Overall, ISRG presents a solid long-term buy opportunity, with near-term volatility managed by technical support levels and positive fundamental momentum.

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