Goldman Sachs Keeps Buy on Intuitive Surgical With $558 Target as Shares Sit 26% Lower
Updated
Updated · The Motley Fool · Jul 15
Goldman Sachs Keeps Buy on Intuitive Surgical With $558 Target as Shares Sit 26% Lower
3 articles · Updated · The Motley Fool · Jul 15
Summary
$558 is Goldman Sachs' 12-month target for Intuitive Surgical, implying about 47% upside even after the stock fell 26% over the past year.
The bullish call looks past near-term pressure from the 2024 da Vinci 5 rollout, which has driven lower-than-expected margins, and from tariffs that are lifting costs.
da Vinci 5 adoption remains strong, and Goldman-backed long-term optimism rests on features such as force feedback that could widen hospital uptake, support new indications and expand the installed base.
Recurring revenue faces scrutiny after some force-feedback tools were extended to 15 uses from six, but the broader thesis is that instruments, accessories and high switching costs still support a durable robotic-surgery franchise.
The longer-term backdrop remains an underpenetrated minimally invasive surgery market, with aging populations and rising competition from large healthcare rivals shaping the next leg of growth.