Intuitive Surgical Checks Show Upside In Procedures Biz, Leerink Notes

Based on surveys and data checks, Leerink’s Richard Newitter expressed confidence regarding Intuitive Surgical, Inc.’s ISRG procedures business being able to meet or beat the estimates for 1Q and the full year.

Newitter maintained an Outperform rating on the company, while raising the price target from $640 to $700.

What The Data Says

Leerink’s Urologist and Gynecologist surveys and intra-quarter general surgery feedback suggest that “key growth drivers (hernia, colorectal) continue to pick up momentum and are likely to serve as ongoing procedure vol. growth engines,” Newitter mentioned.

The analyst also believes that acceleration in these procedure areas could drive upside to the consensus expectations for 1Q, but only if mature categories, such as urology and gynecology are at least in line with the estimates.

“Our MEDACorp survey of 30 urologists and 30 GYNs give us comfort this type of procedure growth should be achievable for Uro/GYN, potentially beatable,” Newitter pointed out.

Estimates Achievable

Newitter expects Intuitive Surgical to see 10 percent procedure growth in the U.S., led by general surgery, with 20 percent growth outside the U.S., led by robotics adoption.

The analyst also expects the company to be able to achieve the 109 worldwide placement estimates, driven by the stable capex environment in the U.S.

“We project 69 US systems including 52 Xi placements and OUS, we model 40 dVs. We also would not be surprised to see an increasing number of op leases,” Newitter added.