Intuitive Surgical (ISRG) is set to release its 2Q16 results on July 19, 2016. In a Bloomberg survey of 19 brokerage companies on July 14, ~68% of analysts rated Intuitive Surgical a “buy,” and 32% rated it a “hold.” None of the analysts gave it a “sell” rating.
The table above lists the 14 brokerage companies that provided target prices for Intuitive Surgical for the next 12 months. The consensus 12-month target price for the company is $684.50, which represents a potential rise of ~1.3%. Intuitive Surgical’s stock price was $675.60 on July 14, 2016.
Northland Securities gave Intuitive Surgical a one-year target price of $600, the company’s lowest target price. This target price implies a 11.2% drop over the next 12 months. Among the other large investment banks, J.P. Morgan gave Intuitive Surgical a one-year target price of $675, implying an approximate return of -0.09% over the next 12 months. Evercore ISI gave the stock its highest one-year target price of $750, which implies a return of ~11%.
Intuitive Surgical’s major competitors include Medtronic (MDT), Stryker (SYK), and TransEnterix (TRXC). They have average broker target prices of $91.70, $119.50, and $3.35, respectively. These figures imply returns of 3.3%, -2.3%, and 170%, respectively, in the next 12 months. Investors can get diversified exposure to Intuitive Surgical by investing in the Health Care Select Sector SPDR Fund (XLV), which has 0.92% of its total holdings in ISRG.
In the next article in this series, we’ll discuss analysts’ 2Q16 revenue estimates for Intuitive Surgical.