Intuitive Surgical’s (ISRG) story is improving. A new product was developed as an upgrade to its da Vinci Surgical System. Furthermore, the company enjoys a virtual monopoly in robotic surgery without direct competition.
The company’s razor/razor blade business model ensures recurring revenues even during difficult times. In the fourth quarter, earnings of $1.95 per share were higher than the Zacks Consensus Estimate of $1.71. Revenue growth was witnessed across all segments.
The company also reported an expansion in its top and bottom lines in fiscal 2009. Based on the company’s strong performance, we upgrade the stock to Outperform with a target price of $400.Zacks Investment Research