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Intuitive Surgical: Oppenheimer now bullish, sees competition being "crowded out"
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Investing.com -- Oppenheimer upgraded Intuitive Surgical to Outperform from Perform with a $500 price target in a note on Wednesday, arguing the company's strategy of "Crowding Out Competitors" is strategically smart.
On the positive side, the firm views U.S. competition as a "non-factor," with field checks suggesting "some unique workflow challenges for Ottava that limit long-term appeal" and real-estate issues for Hugo.
It added that Intuitive's customized price-volume contracts complicate competitor returns, while its per-click model "provides tremendous flexibility in lower-acuity ASC penetration."
The firm was less optimistic about international competition, where about 34% of Intuitive's sales come from.
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