Intuitive Surgical: Forget The 40x P/E. Focus On The 10-Year Potential (Upgrade)
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Kenio Fontes2.37K FollowersFollow5ShareSavePlay(10min)CommentsSummaryIntuitive Surgical is upgraded to a 'cautious buy' despite a premium valuation, reflecting its monopoly position and robust long-term growth prospects.ISRG delivered a strong Q1 with 23% YoY revenue growth, 17% procedure growth, and notable margin expansion, demonstrating operating leverage and recurring revenue strength.The Da Vinci and Ion systems’ installed base continues to ramp up, supporting a compounding financial model with high recurring revenue and long-term customer relationships.Risks include potential market saturation, rising competition, and ongoing stock-based compensation, but ISRG’s innovation and moat justify the premium for long-term investors. NanoStockk/iStock via Getty Images I started my coverage of Intuitive Surgical (ISRG) in 2024 (check it here); in a few months it will be an analysis that is 2 years old. But even though some time has passed, ISRG’sThis article was written byKenio Fontes2.37K FollowersFollowEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.