William Blair starts Intuitive Surgical at Outperform on favorable risk/reward

William Blair analyst Brandon Vazquez initiated coverage of Intuitive Surgical with an Outperform rating and no price target. The firm’s scenario analysis suggests a favorable risk/reward profile, with upside as high as 33% and downside of 19% over the next year. Intuitive is less than 10% penetrated in its long-term treatment opportunity and 30% into its currently service- able opportunity, the analyst tells investors in a research note. The firm thinks da Vinci is and will remain a critical part in delivering minimally invasive surgery benefits to more patients. In addition, Intuitive’s new products can help go deeper into existing opportunities and open entirely new markets, contends Blair.