Thursday, August 09, 2007

Intuitive Surgical (NASDAQ:ISRG): Oppenheimer ups tgt to $255!

- Oppenheimer is upping their tgt on Intuitive Surgical (NASDAQ:ISRG) to $255 from 190 saying they believe over 50% of prostatectomies performed in the US are now being done with the da Vinci system. Additionally, they estimate the number of prostatectomies performed is growing as patients are choosing surgery over radiation therapy or watchful waiting. OpCo also feels that many other urology procedures such as nephrectomies and cystectomies are beginning to be completed with robotics.

The company believes the number of da Vinci hysterectomies will increase at least 175% this year. In firm's opinion, Intuitive is being conservative with this estimate.

And finally general surgery. The da Vinci system can be utilized in most surgical cases. Over time, more and more general surgeons have tried the system and are beginning to report success. Firm believes robotics are currently used in less than 1% of potential general surgery cases and hence feel there is a large potential market here for Intuitive Surgical. They believe general surgery adoption will steadily rise over the next five years.

International use of technically advanced medical devices usually lags several years behind the US. OpCo expect to see a steady ramp of da Vinci sales overseas.

Notablecalls: This looks like the new Street high price tgt for ISRG. That's bound to generate buy interest in this fast-mover today.

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