2024-04-12 11:13:54 ET
Summary
- Intuitive Surgical is a medical device company known for its robotic-assisted surgical systems.
- The company has a strong competitive advantage and a long growth runway, but its valuation will make it difficult for the company to generate strong returns.
- In the near-term, Intuitive Surgical faces challenges in China, reduced bariatric surgery demand, reduced pandemic procedure backlogs and margin pressure from new product launches.
Intuitive Surgical ( ISRG ) is a medical device company known for its robotic-assisted surgical systems, which are designed to perform minimally invasive surgeries. In recent years, the market has come to recognize the quality of Intuitive Surgical’s business, leading the stock to consistently trade on extremely high multiples, even as the business has matured and growth moderated. This has led to returns in line with the market over the past five years, albeit with much higher volatility.
Intuitive Surgical has a long growth runway ahead of it, and a seemingly unassailable competitive advantage. Despite this, the combination of a high multiple and lower growth means that the stock’s best days are in the past. Given the company's prospects, the stock probably continues to perform in line with the broader market but exposes investors to elevated risk....
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Intuitive Surgical: Growth And Margins Will Be Challenged In 2024