Intuitive Surgical volatility elevated into Q4 and revenue outlook Intuitive Surgical February call option implied volatility is at 40, April is at 33; compared to its 26-week average 30 according to Track Data; suggesting larger price movement into the expected release of Q4 results today after the market close.
Intuitive Surgical initiated with a Neutral at Piper Jaffray Piper Jaffray analyst Matt O'Brien started shares of Intuitive Surgical with a Neutral rating and $505 price target. O'Brien calls the stock "simply too expensive" relative to expected sales and earnings, but admits Intuitive's robotic surgical technology will likely dominate the market in the coming years. Further, the analyst thinks the company's da Vinci Prostatectomy and da Vinci Hysterectomy procedures could contract amid new diagnostic tests and insurance pushback. The stock closed yesterday up $2.05 to $496.37.