Bank Of America Impressed By Intuitive Surgical Following Congress

Bob Hopkins of Bank of America attended the AAGL 2014 Global Congress on Minimally Invasive Gynecology last week and were impressed with the feedback received by

Hopkins notes that feedback on Intuitive Surgical's new wristed single site needle driver was “more positive than we expected” and could drive robotic single site hysterectomy procedures. The analyst adds that it's evident surgeons have wanted wristed functionally since 2013 and the lack of having the functionality has been a limiting factor preventing surgeons from adopting a single site. Hopkins also notes that there appears to be even more functionality coming to improve single site hysterectomy based on discussions with surgeons and hints from sales representatives that new instruments will be forthcoming. However, Hopkins states that based on further conversations, macro-headwinds impacting GYN surgical volumes have not “materially changed,” but new technology in robotics should drive penetration higher. Shares of Intuitive Surgical are Buy rated with a $550 price target.