Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Intuitive Surgical (ISRG) stock, we need to analyze both technical and fundamental factors.

Technical Analysis:

Intuitive Surgical's stock price has been experiencing a bearish trend recently, with significant resistance around the $511 mark. The latest candlestick chart shows a potential reversal pattern, indicating a possible short-term upside.

Fundamental Analysis:

ISRG has a strong market position in the surgical robotics industry, with a growing market size projected to reach $16.82 billion by 2034. The company has a high-quality product portfolio and a robust recurring revenue model. However, the recent Class 2 recall of its da Vinci 5 system has led to a 16.6% decline in shares since February 26, 2025. This recall could impact sales growth and margins, especially since the da Vinci 5 is a key product for ISRG in 2025.

Valuation Analysis:

ISRG currently has a forward P/E ratio of 42.5, which is higher than the industry average, suggesting that investors are pricing in high growth expectations. The stock is trading above its 50-day and 200-day moving averages, which is positive, but the high valuation and recent recall are concerns.

Sentiment and Analyst Ratings:

Analyst sentiment is mixed. While some analysts remain bullish on ISRG’s prospects, others express concerns about its ability to scale production efficiently. Based on recent analyst ratings, ISRG has a consensus "Hold" rating, with a mean target price of $642.40, suggesting a potential upside of 13.3% from the current market price.

Event Impact Assessment:

The recent Class 2 recall of the da Vinci 5 system has led to a 16.6% decline in shares since February 26, 2025. This recall could impact sales growth and margins, especially since the da Vinci 5 is a key product for ISRG in 2025. However, the company is working to resolve the issue and has issued an Urgent: Medical Device Correction mail to affected consignees.

Conclusion:

Given the high valuation, recent volatility, and the impact of the da Vinci 5 recall, ISRG stock might not be the best buy for risk-averse investors at this time. However, if you're willing to accept potential price fluctuations for long-term growth, it could still be a good option. Consider waiting for a price dip or a confirmation of an uptrend before entering the market.

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Intuitive Surgical (ISRG) is expected to reach a price of $650 by 2025. This prediction is supported by strong revenue growth, driven by increasing adoption of robotic-assisted procedures and the successful launch of the da Vinci 5 system. Analysts maintain a "Strong Buy" consensus with a mean target of $642.40, indicating confidence in ISRG's long-term growth potential.

The S1 support level for ISRG Stock is $483.4 ,The R1 resistant level for ISRG Stock is $516.72.

As of the end of day on 2025-04-02, the price of ISRG Stock was $497.92.

The target price for ISRG Stock according to analyst rating is 641.83, with the highest price target at 711.00 and the lowest at 570.00. Analysts have a Moderate Buy rating on ISRG Stock overall.

The market cap of ISRG is $181.7B.

Analysis and Insights

Valuation Metrics:

Intuitive Surgical (ISRG) currently exhibits elevated valuation metrics compared to industry peers. The stock trades at a forward P/E ratio of 71.98–81.35, significantly above the medical equipment sector average. The EV/EBITDA ratio of 58.52–66.36 and P/S ratio of 19.55–22.62 further indicate a premium valuation. The price-to-book ratio of 10.14–11.33 also suggests the stock is trading at a substantial premium to its book value.

Recent Events and Impact:

The recent Class 2 recall of the da Vinci 5 robotic surgery system has led to a 16.6% decline in ISRG shares since the recall was initiated. This recall, coupled with concerns over potential delays in product adoption and margin pressures from tariffs, has raised questions about the company's near-term growth prospects.

Analyst Sentiment:

While some analysts maintain a "Buy" rating on ISRG, citing strong fundamentals and long-term growth potential, others have lowered their price targets due to tariff impacts and recall-related risks. The stock has an average price target of $605–$675, reflecting a 15–23% upside potential from current levels.

Conclusion:

ISRG appears overvalued given its high valuation multiples, recent recall impact, and margin pressures. While the company maintains a strong position in the growing surgical robotics market, investors should exercise caution until the da Vinci 5 system issues are resolved and tariff impacts are better understood.

Intuitive Surgical, Inc. develops, manufactures, and markets the da Vinci surgical system and the Ion endoluminal system. The Company's products and related services enable physicians and healthcare providers to access minimally invasive care. The da Vinci surgical system consists of a surgeon console or consoles, a patient-side cart, and a high-performance vision system. The da Vinci products fall into five categories, namely da Vinci surgical systems, da Vinci instruments and accessories, da Vinci Stapling, da Vinci Energy, and da Vinci Vision, including Firefly Fluorescence imaging systems and da Vinci Endoscopes. It also provides a comprehensive suite of systems, learning, and services offerings. The Ion endoluminal system consists of a system cart, a controller, a catheter, and a vision probe. It extends its commercial offerings beyond surgery into diagnostic procedures, enabling minimally invasive biopsies in the lung. Both systems use software, instruments, and accessories.

Intuitive Surgical (ISRG) is expected to reach a price range of $800-$850 by 2030, driven by its leadership in robotic surgery and potential market expansion. The stock's current challenges, including a recent product recall and margin pressures, are temporary setbacks. Analysts remain optimistic about its long-term growth.

ISRG has a total of 13676 employees.