Analysts cut price targets for Intuitive Surgical (ISRG)

What happened: Intuitive Surgical (ISRG) reported Q1 2023 earnings, with total procedures up 17% year-over-year (YoY), driven by a 16% increase in da Vinci procedures to 847,000. Revenue surged 23% to $2.77 billion. Despite this, price targets were cut by Mizuho, BTIG, and Evercore, with Mizuho reducing its target from $575 to $525.

Market impact: The cut in price targets reflects analyst concerns about slowing growth in China and Japan, despite strong overall procedure growth. This impacts ISRG's stock valuation, with the stock trading at a high P/E ratio of 52.5x, and may influence investor sentiment towards the medical devices sector.

What to watch next: ISRG's Q2 2023 earnings call on May 3, 2023, will provide further insight into procedure growth and demand trends, particularly in China and Japan. Additionally, any updates on regulatory approvals or new product launches could drive the narrative.