Piper upgrades Intuitive Surgical, sees robotic surgeries going 'much higher'
Piper Jaffray analyst JP McKim upgraded Intuitive Surgical to Overweight from Neutral after taking over lead coverage from analyst Matt O'Brien. McKim also boosted his firm's price target for the shares to $600 from $540. The stock closed the trading day up $4.74 to $531.21. A survey of doctors from various specialties came back favorable for robotics and confirms that robotic surgery penetration is going "much higher," McKim tells investors in a research note. Further, the analyst's analysis of Intuitive's current install base and recent trade-in activity point to the beginnings of an upgrade/new product cycle of older generation to fourth generation systems. He sees upside to the company's system placements in 2018 and 2019 coupled with "sustainable" 15%-plus procedure growth going forward.