UPDATE: Wedbush Initiates Coverage on Intuitive Surgical with Outperform Rating, $580 PT on Market Leader Position

In a report published Tuesday, Wedbush analyst Tao Levy initiated coverage on Intuitive Surgical ISRG with an Outperform rating and $580.00 price target. In the report, Wedbush noted, “Intuitive Surgical is the leader in the robotic surgery market with its da Vinci Surgical System, generating over $2 billion in revenues that we expect to grow at a 3-year CAGR of 16%. The company is highly profitable (operating profit margin of approximately 40%), with a pristine balance sheet that holds a net cash & investments position of $3+ billion ($75/share). While ISRG has encountered mounting criticisms from multiple parties, we find the risk/reward profile attractive at current levels. Our bullish outlook is predicated on the underpenetrated procedure opportunity, ongoing launch of new instruments and accessories, and ISRG's track record of innovation and new product development.” Intuitive Surgical closed on Monday at $499.32.