Intuitive Surgical (ISRG) Stock Forecast & Price Target

Intuitive Surgical demonstrated robust growth indicators, with Ion utilization increasing by 14% and SP utilization growing by 35%, showcasing the successful expansion of its installed systems in diverse markets. The company reported a modest increase in Da Vinci utilization in the U.S. by approximately 2% year-over-year, attributed to the efficiency benefits of its newer D5 systems and a rising number of procedures performed. Furthermore, Intuitive Surgical's gross margin guidance has improved to 67-67.5%, driven by higher U.S. system placements and an enhanced outlook on tariffs, indicating a solid financial positioning moving forward.

Intuitive Surgical's recent performance has raised concerns regarding its growth prospects, as Services revenue fell short of expectations at $396 million, alongside macroeconomic uncertainties impacting hospital capital budgets and delaying robotic purchases. Additionally, ongoing resistance from market and physicians toward robotic surgical approaches, coupled with challenges in launching novel platforms like D5, SP, and Ion, hinder the company's ability to expand its market share. Lastly, external factors such as third-party instrument reprocessing affecting consumable average selling prices and tariffs on imports from Mexico further complicate Intuitive Surgical's operational landscape, suggesting a cautious outlook for the company's stock.