Barclays: Intuitive Surgical Still Worth $650

Barclays noted that Intuitive Surgical, Inc.

is still valued at $650. In a research note on Friday, Barclays maintained an Overweight rating on the stock

, "'net-net, this was another excellent quarter and overall, we think ISRG's opportunities outweigh the risks. Intuitive Surgical released its Q42015 results on Thursday, revealing that its pro-forma revenue grew ~13 percent y/y to $677. "By segment, instrument and accessory revenue of $231 million was in line with our $229 million service revenue of $120 million," Barclays noted. "EPS was $5.89, above consensus expectations and helped by $0.17 for the R&D tax credit." The firm also noted that Intuitive Surgical's 2016 commentary was "relatively unsurprising." Intuitive Surgical's only exception was its OpX guidance of a 9-13 percent increase. "While 2015 started with both procedure and OpX guidance of +7-10 percent, by the end of the year, ISRG was expecting to grow procedures 13-14 percent and OpX only 7 percent generating significant leverage," Barclays commented. The company saw its Q1 sales lower than just reported for Q4 2015. Intuitive Surgical presently sees its 2016 tax rate at 26.5 percent to 28.5 percent of pre tax income. Shares of Intuitive Surgical reached a new 52-week high of $572.885 following the company's report of upbeat profit for its fourth quarter on Thursday.