Intuitive Surgical (ISRG) remains positioned for durable growth despite moderating US da Vinci procedure growth, RBC Capital Markets said in a Thursday note.
The firm said US da Vinci procedure growth slowed to 12% in Q2 from 14% in Q1 because of deferred elective procedures tied to changes in Affordable Care Act premium subsidies and continued GLP-1-related pressure on bariatric procedures.
RBC said the underlying disease burden remains unchanged and management expects deferred procedures to return over time.
RBC also said capital demand remains steady, supported by da Vinci 5 upgrade activity, ambulatory surgery center placements and a leasing model that provides flexibility for customers.
RBC Capital Markets maintained its Outperform rating on Intuitive Surgical and lowered its price target to $575 from $600.
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