UPDATE: Canaccord Genuity Upgrades Intuitive Surgical; Sensitivity Analysis Suggests Upside
Canaccord Genuity upgraded Intuitive Surgical (NASDAQ: ISRG) from Hold to Buy and lowered the price target from $590.00 to $527.00.
Canaccord Genuity analyst Jason R. Mills commented, "Our valuation analysis for both scenarios uses 1) 1.5x P/E/G multiple (in line with mid/large cap med-tech comps), and 2) two-year EPS CAGR derived from the aforementioned scenarios. The “moderate” downside scenario generates a year-end '13 target of $517, while the “significant” downside scenario implies a $474 target. Averaging our previous target of $590 (based on current estimates) with these scenario-based targets gives us a mean year-end target of $527. With more than 10% upside potential to our new target (15% to be exact), we upgrade to a BUY rating."
Intuitive Surgical closed at $459.44 on Friday.
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