Intuitive Surgical price target lowered to $340 from $373 at BTIG

BTIG analyst Ryan Zimmerman lowered the firm’s price target on Intuitive Surgical to $340 from $373 but keeps a Buy rating on the shares after its Q3 results. The company’s procedure growth and systems were just above estimates, driven by U.S. and OUS general surgery, but revenue missed, and the stock’s decline is reflecting investor concerns on Intuitive Surgical’s exposure to bariatrics, coupled with rising adoption of GLP-1s, regading the longer-term utility of robotics in this procedure class, the analyst tells investors in a research note. BTIG adds that while the growing lease adoption of System was the main culprit for a miss to System sales in the quarter, given the limited competition in the U.S. market and longer-term leasing trends driving customer stickiness, the firm views the after-market sell off as overdone.