Evercore ISI Maintains Hold Rating, Lowers PT on Intuitive Surgical to $535

Evercore ISI lowered its price target on Intuitive Surgical (ISRG) to $535 from $550, while keeping an In Line rating on the stock. The firm is uncertain about the company's ability to sustain its momentum, despite exceeding revenue and EPS expectations in Q2. ISRG develops and markets robotic-assisted surgical systems, including the da Vinci and Ion systems. The firm believes certain AI stocks offer greater upside potential and carry less downside risk.

Evercore ISI Group has recently revised its price target for Intuitive Surgical (NASDAQ: ISRG) from $550 to $535, while maintaining an "In-Line" rating on the stock. The decision reflects the firm's uncertainty about Intuitive Surgical's ability to sustain its momentum despite exceeding revenue and earnings per share (EPS) expectations in the second quarter. The company develops and markets robotic-assisted surgical systems, including the da Vinci and Ion systems.

Intuitive Surgical reported earnings of $2.19 per share for the last quarter, surpassing the consensus estimate by $0.26 and showcasing a year-over-year revenue increase of 21.4% [1]. The company's strong performance has led to an average analyst rating of "Moderate Buy" from 19 research firms, with 13 buy ratings, 5 hold, and 1 sell rating [1]. However, Evercore ISI believes that certain AI stocks offer greater upside potential and carry less downside risk, prompting the firm to lower its price target.

The firm's concern stems from the potential challenges Intuitive Surgical may face in maintaining its growth trajectory. The company's competitive landscape is crowded, and the healthcare sector is subject to regulatory changes and market dynamics that could impact its performance. Additionally, the company's reliance on a single product line, the da Vinci Surgical System, could pose risks if competitors introduce more advanced or cost-effective solutions.

Evercore ISI's decision to lower the price target is a cautious move, reflecting the firm's belief that while Intuitive Surgical has demonstrated strong financial performance, the market may be overestimating the company's future growth prospects. The firm's focus on AI stocks suggests a shift in its investment strategy, prioritizing sectors with higher growth potential and lower downside risk.

Investors should closely monitor Intuitive Surgical's financial results and strategic initiatives to assess the company's ability to sustain its momentum and navigate potential challenges. The healthcare sector's dynamic nature requires continuous evaluation of companies' competitive positions and market opportunities.

References:
[1] https://www.marketbeat.com/instant-alerts/intuitive-surgical-inc-nasdaqisrg-given-average-rating-of-moderate-buy-by-analysts-2025-08-15/
[2] https://www.ainvest.com/news/evercore-isi-group-raises-price-target-132-2508/