Intuitive Surgical price target raised to $435 from $390 at Truist

Truist analyst Richard Newitter raised the firm’s price target on Intuitive Surgical to $435 from $390 and keeps a Buy rating on the shares after its Q4 earnings beat. The company’s next-gen D5 system is now at the FDA pending 510k approval, with an official launch window now within sight and possibly coming as soon as 2024, the analyst tells investors in a research note. Gross margin pressures, higher tax, and operating expense growth will likely cause FY24 EPS growth to decelerate, but investors should readily look forward to a FY25 and beyond, when revenue growth & re-expanding margins should drive healthy revenue and EPS re-acceleration back to mid-teens territory, the firm added.