On Jan 24, Zacks Investment Research upgraded
Intuitive Surgical, Inc.
) to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Why the Upgrade?
Intuitive Surgical reported fourth-quarter 2013 net earnings of
$4.28 per share, on Jan 23, which outpaced the Zacks Consensus
Estimate of $3.79 and were up 1% year over year.
Despite persistent weak macro economic conditions, coupled with
stiff hospital capital spending environment and sluggish benign
gynecologic procedures in the U.S, the company generated modest
Moving ahead, in 2014, Intuitive Surgical seeks to expand the use
of its novel technology -- da Vinci -- in several general surgery
applications. Establishing its foothold in the markets of Europe
and Japan is also an important agenda for the company in the
upcoming quarters. Further, the absence of no direct competition
plays a major role in strengthening the company's hopes to gain a
better foothold in the niche market.
Stabilization of growth is expected as it is believed that
robotic surgery will increasingly start replacing open surgical
procedures in the long term. Moreover, the risk of adoption of
its new and innovative products is a major concern for the
company as it requires longer time to gain market acceptance.
However, good and effective training regarding its products will
ensure widespread adoption of the same.
Other Stocks to Consider
Investors interested in the medical instruments industry can look
Natus Medical Inc.
) both carrying a Zacks Rank #1 (Strong Buy), and
Echo Therapeutics, Inc
) carrying a Zacks Rank #2 (Buy)
NATUS MEDICAL (BABY): Free Stock Analysis
CEPHEID INC (CPHD): Free Stock Analysis
ECHO THERAPEUT (ECTE): Free Stock Analysis
INTUITIVE SURG (ISRG): Free Stock Analysis
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