Intuitive Surgical Stock Can Trend Much Higher This Year

Company Performance - Intuitive Surgical reported $1 89 billion in revenue for Q1, a nearly 12% year-over-year (YOY) gain, outpacing consensus by 100 basis points [2] - Procedure volume increased by 16%, driven by a 90% increase in ion bronchoscopy procedures and a 14% increase in the installed machine base [2] - Instruments & Accessories segment led revenue growth, up 18%, while Systems revenue declined by 2% due to end-user mix [2] - Services revenue grew by 10% [2] - GAAP net income increased by 53%, GAAP earnings by 51%, and adjusted earnings by 22%, 560 basis points better than consensus [2] - Operating costs rose only 7%, contributing to a widening operating margin [2] Market Position and Growth Drivers - Intuitive Surgical is the industry leader in medtech, outperforming expectations and benefiting from the widening use of DaVinci systems and deeper market penetration [1][2] - The company is experiencing industry normalization and a global backlog of procedures, which are expected to drive continued growth [1][2] - Analysts have raised price targets, with a range of$ 375 to $436, reflecting potential upside of 1% to 18% [4] - The stock recently broke out to a new high and is now retesting support levels, with critical support near$ 358 [5] Analyst Sentiment and Institutional Activity - Analysts rate Intuitive Surgical as a "Moderate Buy," with steady consensus over the past twelve months [4] - Insider selling occurred in Q1 2024, but insiders own only 0 90% of the company, and their activity is not seen as a significant red flag given the strong results [4] - Institutions own approximately 84% of the stock, with light activity that has supported the market over the past year [4] Competitive Landscape - While Intuitive Surgical is a top performer, some analysts recommend five other stocks as better buys, though Intuitive Surgical remains a strong contender in the medtech space [5]