Goldman Sachs analysts raised their price target for shares of Intuitive Surgical (NSDQ:ISRG) after a strong third-quarter showing from the robotic surgery firm.
The researchers boosted their target from $362 to $412 and maintained their “neutral” rating in a note to investors.
“The quarter’s results continue to demonstrate solid underlying demand for da Vinci surgical robots even in the face of what appears to be a tough capex environment and channel checks suggesting high-end equipment remains a low priority for hospitals,” according to Goldman Sachs. “Unless a source of material weakness is displayed by Intuitive Surgical’s business, current momentum in the stock is unlikely to reverse.”
Here’s how the investment bank now estimates ISRG’s annual earnings per share for the next four years:
Intuitive’s sales and earnings surged for the third quarter, sending share prices up 11.2 percent to a 52-week high of $425.49 Oct. 19, before settling to close at $417.62. ISRG shares were trading at $414.78 today as of about 1:15, down 0.87 percent on the day.
Edwards Lifesciences and Mela Sciences topped the list of the best five stock performers in med-tech yesterday, as ranked by Financial News Network:
- Edwards Lifesciences (NYSE:EW): 2.86%
- Mela Sciences (NSDQ:MELA): 2.86%
- Idexx Laboratories (NSDQ:IDXX): 2.53%
- Mindray Medical (NYSE:MR): 2.0%
- Sirona Dental Systems (NSDQ:SIRO): 1.08%
Is BSX a good bet or not?
Two Wall Street watchers have differing views on Boston Scientific stock, with one recommending it as a good long-term buy and the other panning its chances of a successful turnaround.
Writing on SeekingAlpha.com, Stephen Simpson and self-styled blogger “Vatalyst” lay out their conclusions:
“With a new caretaker CEO at the reins, but only for a year, it an open question as to whether investors can reasonably expect any near-term progress. While there are some bright spots deep in the pipeline, it is going to take many years for them to bear fruit, and BSX will find itself having to battle for share amidst established competition,” according to Simpson. “All in all, this is an investment that requires a great deal of faith – and hope and faith are seldom great partners to have in an investment.”
“Boston Scientific’s share price has, in my view, been penalized too heavily by the market. News such as its full enrollment in clinical trials to evaluate its WallFlex Biliary RX covered stent – in a market segment from which Abbott Laboratories (NYSE:ABT) announced its withdrawal in June due to decreasing market share – shows that the company is preparing for growth in its specialized areas,” Vitalyst countered. “With the share price at the low end of its 52-week trading range of $5.41 to $7.96, a forward price-to-earnings ratio of less than 11, and a reported book value of $7.55, BSX is a stock that I believe offers excellent value in a poorly performing sector. It’s a buy.”
Boston Scientific beat The Street with its Q3 earnings, reporting profits of $142 million, or 9 cents per diluted share, on sales of $1.87 billion for the three months ended Sept. 30. That compares with profits of $190 million, or 12 cents diluted EPS, on sales of $1.92 billion during the same period last year.