Research Alert: CFRA Keeps Buy Rating On Shares Of Intuitive Surgical, Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our target price to $590 from $645, 52.7x our 2027 EPS estimate, below ISRG's five-year average forward P/E of 58x. We raise our 2026 EPS forecast to $10.09 from $9.78 to reflect the Q1 beat and maintain our 2027 EPS estimate at $11.19. We maintain a neutral outlook on the health care equipment sub-industry, as we see positive long-term tailwinds balancing out near-term headwinds. We think that the sub-industry's underperformance relative to the S&P 500 since the beginning of the year accentuated since the onset of the U.S.-Iran conflict in February. This reflects investor caution around near-term operational challenges for Medtech companies, particularly around supply chain, despite the sub-industry's attractive longer-term growth trajectory. We think ISRG shares are trading attractively at current valuations given its robust outlook despite the weakness seen in recent months, which we mainly attribute to the overall negative sentiment for the sub-industry's near-term pressures.