Intuitive (NASDAQ:ISRG), which manufactures robotic surgical systems, announced that the Food and Drug Administration (FDA) has granted clearance for its latest multiport robotic system, da Vinci 5. Following the announcement of this news, ISRG stock increased 3.3% in Thursday’s after-hours trading.
During the fourth-quarter conference call, the company’s leadership highlighted that the da Vinci 5 has significant technological advancements, with 10,000 times more processing, sensing, and analyzing power than its Generation 4 predecessor. Thus, the FDA’s approval of the da Vinci 5 marks a positive milestone for Intuitive, as it is expected to drive the company’s revenue growth and bolster its competitive position in the market.
Echoing similar sentiment, Morgan Stanley analyst Drew Ranier said on January 25 that da Vinci 5 will widen Intuitive’s competitive moat. However, the analyst maintained a Hold rating on ISRG stock due to uncertainties. While the company prepares for a phased launch of da Vinci 5, let’s look at the Street’s forecast for ISRG stock.
Is Intuitive a Good Buy?
Intuitive stock is up about 14% year-to-date, and it has gained more than 64% in one year. While the FDA’s approval of da Vinci 5 is a positive development, its margins may remain under pressure in the near term as it introduces this next-gen product to the market.
The stock sports a Moderate Buy consensus rating based on 14 Buy and six Hold recommendations. Analysts’ average price target on ISRG stock is 416.89, implying 8.48% upside potential over the next 12 months.
