Investment Thesis
Intuitive Surgical (NASDAQ:ISRG) is benefiting from pandemic-driven tailwinds. The company faces a heavy backlog of procedures that will enable it to prosper in a reopening economy. There will also be a higher run rate
Intuitive Surgical: Alpha Opportunity
Summary
- Intuitive Surgical is benefiting from pandemic-driven tailwinds.
- Company has a heavy backlog of procedures that will enable it to prosper during reopening. There will also a higher run rate of demand.
- The consensus of analyst estimates does not reflect this outcome.
- I do not see the lofty valuation of Intuitive Surgical as a deterrent to my Buy recommendation given the near-term earnings upside, secular tailwinds behind the company, and its exceptional financial profile.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ISRG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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