Key insights
- Evercore ISI added Intuitive Surgical (ISRG) to its Tactical Outperform List, anticipating a positive earnings catalyst driven by strong procedure growth. Their hospital survey indicates robotic surgery is a high priority for capital expenditure. Based on Johnson & Johnson's results, Evercore ISI estimates ISRG's procedure growth at 16.5%, exceeding Street estimates. The stock is trading at the lower end of its 12-month range, suggesting potential upside upon earnings release.
Investing.com - Evercore ISI reiterated an In Line rating and $480.00 price target on Intuitive Surgical (NASDAQ:ISRG) while adding the stock to its Tactical Outperform List ahead of the company’s earnings report.
The firm said the addition to the tactical list is not a rating change but a call specific to an earnings catalyst. Intuitive Surgical shares are down 17% year-to-date, currently trading at $469.21 with a market cap of $166.65 billion. According to InvestingPro analysis, the stock appears overvalued relative to its Fair Value.
Evercore ISI cited positive procedure growth indicators, noting that Johnson & Johnson beat estimates within its Surgical franchise last week. The firm’s quarterly hospital capital expenditure and procedure survey showed robotic surgery ranked first in priority for the first quarter of 2026, while laparoscopic surgery ranked last.
Based on Johnson & Johnson’s first-quarter results, Evercore ISI estimates Intuitive Surgical’s procedure growth at approximately 16.5% in the first quarter of 2026, about 200 basis points above Street estimates. When Ion biopsy procedures are included, total growth could exceed 17%.
Intuitive Surgical shares have traded in a range between $450 and $600 over the past 12 months and currently trade at the low end of that range. Evercore ISI expects the stock to rise on the first-quarter earnings print based on the potential procedure growth beat. InvestingPro Tips highlight the company as a prominent player in the Healthcare Equipment & Supplies industry, with earnings scheduled for April 21. Investors can access a comprehensive Pro Research Report for deeper analysis.
In other recent news, Intuitive Surgical has completed its acquisition of distributors in Southern Europe, allowing the company to operate directly in countries such as Italy, Spain, Portugal, and Malta. This strategic move eliminates the need for third-party distributors in these markets. Additionally, the company recently disclosed a cybersecurity breach involving unauthorized access to certain internal IT applications through a phishing incident. Intuitive Surgical responded swiftly by securing all affected applications and initiating incident response protocols.
On the analyst front, TD Cowen initiated coverage of Intuitive Surgical with a Buy rating, citing the company as a core MedTech holding with multiple growth vectors. Freedom Capital Markets also upgraded the stock from Hold to Buy, raising the price target to $610.00, driven by optimism surrounding the rollout of the da Vinci 5 surgical system. A former executive highlighted that Intuitive Surgical’s competitive advantage is rooted in its comprehensive training infrastructure, which remains ahead of competitors like Johnson & Johnson and Medtronic by several years. These developments underscore the company’s ongoing efforts to strengthen its market position and operational capabilities.
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