Deutsche Bank Warns of Remanufactured Instrument Risk for Intuitive Surgical

Deutsche Bank's channel checks indicate growing interest in remanufactured instruments at robotics programs, which could pose a risk to Intuitive Surgical's instruments and accessories franchise, representing 60% of its total sales. The analyst expects significant engagement with remanufacturers by larger hospital systems and maintains a Sell rating on Intuitive Surgical shares with a $440 price target.

Market volatility has led to significant declines in the stock prices of Intuitive Surgical, Box, and Surgery Partners, as investors brace for potential market shifts ahead of the Jackson Hole symposium. The symposium, which provides insights into the Federal Reserve's monetary policy, is expected to offer guidance on interest rates, influencing market sentiment and stock prices.

On July 2, 2025, Box (NASDAQ:BOX) fell by 3.5%, Intuitive Surgical (NASDAQ:ISRG) dropped by 4%, and Surgery Partners (NYSE:SP) decreased by 4.1%. These declines reflect broader market uncertainty as investors await Fed Chair Powell's speech for clarity on interest rates. Surgery Partners shares have been particularly volatile, with 13 significant price movements greater than 5% over the past year, but remain 31.9% below their 52-week high [1].

Intuitive Surgical, a leader in robotic surgery, reported strong financial results for Q2 2025, with revenue reaching $2.44 billion, representing a 21% year-over-year growth. Despite this, the company's stock has shown mixed reactions, closing down 1.09% on August 14, 2025, despite a modest premarket uptick of 0.36% on August 15. The successful launch of its next-generation da Vinci 5 platform has contributed to the company's growth, with early adoption metrics showing encouraging results [1].

On August 21, 2025, Intuitive Surgical saw a trading volume of $1.16 billion, a 71.36% increase from the previous day, ranking it 53rd in market activity. The stock closed with a 2.20% decline. Analysts highlighted Intuitive Surgical’s leadership in the robotic-assisted surgery market, driven by demand for minimally invasive procedures and the widespread adoption of its da Vinci system. The company reported 10,488 installed da Vinci systems as of Q2 2025, a 14% year-over-year increase. The fifth-generation da Vinci system, launched in 2024, is expected to reinforce its market dominance, leveraging its first-mover advantage and established clinical data. However, challenges such as high switching costs for healthcare facilities and rising operational expenses remain key considerations for investors [2].

Deutsche Bank's channel checks indicate growing interest in remanufactured instruments at robotics programs, which could pose a risk to Intuitive Surgical's instruments and accessories franchise, representing 60% of its total sales. The analyst expects significant engagement with remanufacturers by larger hospital systems and maintains a Sell rating on Intuitive Surgical shares with a $440 price target.

Investors are closely watching these companies for any signs of recovery or improvement, as market conditions remain uncertain ahead of the Jackson Hole symposium.

References:
[1] https://www.ainvest.com/news/market-volatility-sees-box-intuitive-surgical-surgery-partners-stocks-decline-2508/
[2] https://www.ainvest.com/news/intuitive-surgical-isrg-trading-volume-surges-71-1-16-billion-ranks-53rd-august-21-2-2-price-decline-2508/