Skip to main content

Market Overview

The Surgical Robotics Revolution Isn't Slowing Down Any Time Soon, Says RBC Analyst

Share:
The Surgical Robotics Revolution Isn't Slowing Down Any Time Soon, Says RBC Analyst

  • Brandon Henry of RBC Capital Markets estimated that U.S. robotic general surgery volumes rose sequentially in the third quarter.
  • Henry noted that around 93 percent of U.S. robotic surgeons he surveyed indicated their third-quarter robotic volumes were flat or up sequentially.
  • Henry added his survey bodes well for Intuitive Surgical, Inc. (NASDAQ: ISRG), despite the da Vinci Xi still in its early product lifecycle.
  • According to Brandon Henry of RBC Capital Markets, U.S. robotic general surgery volumes are likely to be higher sequentially in the third quarter. The analyst noted that 93 percent of U.S. robotic general surgeons he surveyed expect their third-quarter robotic volumes to be flat or up sequentially – a finding that is consistent with checks at the American College of Surgeons annual meeting.

    Henry continued that his survey and checks bode well for Intuitive Surgical, as the company should show an approximate 2 percent sequential growth and 35 percent year-over-year growth in its U.S. general surgery procedures, despite its da Vinci Xi remaining in early product cycle. The analyst added that the surgeons he surveyed expect the number of Xi systems within their areas of practice to increase by 50 percent over the next 12 months. Moreover, the majority of robotic surgeons are "quite satisfied" with Intuitive Surgical's robotics offerings.

    Related Link: Two Big Cap Earnings Calls To Watch On Monday

    Upcoming Results

    Intuitive Surgical is scheduled to report its third-quarter results on Tuesday, October 20, after market close. The analyst is modeling 121 worldwide da Vinci system placements and an approximate 14 percent worldwide procedure growth, as the entire sector benefited from "stable worldwide hospital capital spending trends."

    A Look Ahead

    Looking forward to 2016, Henry's survey indicated that surgeons are expecting their robotic general surgery procedures to grow approximately 35 percent year-over-year – a figure that is "slightly above" the analyst's own estimate for Intuitive Surgical of 30 percent, which offers confidence the company can achieve at least his growth targets.

    Shares of Intuitive Surgical remain Sector Perform rated with an unchanged $565 price target.

    Image Credit: Public Domain

     

    Related Articles (ISRG)

    View Comments and Join the Discussion!

    Posted-In: Analyst Color Biotech Earnings Health Care Previews Top Stories Analyst Ratings Tech Best of Benzinga

    Latest Ratings

    StockFirmActionPT
    OTRKRBC CapitalDowngrades32.0
    EVHCanaccord GenuityMaintains24.0
    BMRNCanaccord GenuityMaintains91.0
    ONTFCanaccord GenuityInitiates Coverage On65.0
    MTZCredit SuisseMaintains114.0
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Premarket Activity
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Fintech Focus
    A daily collection of all things fintech, interesting developments and market updates.
    SPAC
    Everything you need to know about the latest SPAC news.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com