Intuitive Surgical, Inc. (ISRG): A Bull Case Theory

We came crossed a bullish thesis connected Intuitive Surgical, Inc. connected Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we volition summarize the bulls’ thesis connected ISRG. Intuitive Surgical, Inc.'s stock was trading astatine $573.48 arsenic of November 28th. ISRG’s trailing and guardant P/E were 75.86 and 60.24 respectively according to Yahoo Finance.

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Intuitive Surgical has established itself arsenic a planetary person successful robotic-assisted surgery, transforming analyzable procedures with its da Vinci system, present utilized successful implicit 17 cardinal operations crossed 74 countries. The institution has built an full surgical ecosystem, from infirmary workflows and surgeon grooming to recurring gross from instruments, accessories, and work contracts, giving it an estimated 60–70% marketplace stock successful soft-tissue robotics.

This dominance, combined with a razor-and-blade concern model, provides high-margin, predictable revenue, with 85% of its nearly $10 billion annual gross present recurring. Intuitive’s growth has been driven by a operation of installed basal expansion, rising process volumes, planetary geographic reach, and continual merchandise innovation, including the da Vinci 5 strategy and emerging platforms similar Ion. Despite rising contention from Medtronic, CMR Surgical, Johnson & Johnson, and others, Intuitive’s ecosystem, regulatory approvals, and surgeon lock-in make a durable moat that remains difficult to challenge.

Financially, the institution has grown revenues astatine a 15% CAGR implicit the past decade, maintains near 70% gross margins, generates implicit $1 cardinal successful escaped currency travel annually, and operates with virtually no debt. Recent quarters amusement continued strong system placements, 21% recurring gross growth, and unchangeable margins contempt humble tariff and outgo pressures. Long-term secular tailwinds, including the planetary displacement toward minimally invasive country and process enlargement into caller specialties, enactment debased double-digit to mid-teens maturation for the foreseeable future.

Valuation, however, is rich, with shares trading astir 50× net and lone humble upside from existent levels. While Intuitive remains a must-own high-quality compounder successful healthcare, the banal is charismatic chiefly astatine little introduction points, with an accumulation people adjacent $380 per stock to equilibrium hazard and reward.

Previously we covered a bullish thesis connected Intuitive Surgical, Inc. (ISRG) by Kontra Investment Xchange successful December 2024, which highlighted the company’s da Vinci Surgical System, mid-teens maturation successful robotic surgery, and recurring gross from instruments and services. The company's banal terms has appreciated astir by 5.80% since our coverage. The thesis inactive stands arsenic Intuitive maintains its leadership. Kontra Investment Xchange shares an identical presumption but emphasizes AI integration.