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Intuitive Surgical Rallies on Q3 Beat as Analysts Lift Targets, Cite Valuation Limits

Strong procedure momentum anchored by recurring revenue underpins the outlook.

Overview

  • Shares jumped nearly 14% on October 22 following Q3 results, helping drive a 9.6% year‑to‑date gain.
  • Consensus remains a strong Buy with roughly 9% implied upside, reflecting optimism tempered by a rich valuation.
  • UBS raised its price target to $600 while keeping a Hold rating, pointing to solid fundamentals alongside constrained upside.
  • Freedom Capital’s Ilya Zubkov reiterated Hold and lifted his target to $560, citing operating leverage and demand but cautioning that gains already price in improvements.
  • Q3 revenue reached about $2.5 billion, up 23% year over year, with worldwide procedures up ~20% as da Vinci grew ~19% and Ion rose 52%, supported by sizable recurring sales of instruments, accessories, and services.