Earlier this week, Goldman announced a $1,000 price target on surgical robot maker, Intuitive Surgical, Inc. (NASDAQ: ISRG). Goldman Sachs anticipates robot-assisted procedures to double within the next two years.
The buy rating has come as Intuitive Surgical is one of the best performing stocks in the market this year so far. According to CNBC, the surgical robot maker is up over 35 percent year-to-date. "With less than 4 percent of U.S. surgeries employing robotics today, we think investors should own this structural winner as the market doubles in the next few years," analyst Isaac Ro wrote in a note to clients Tuesday. "We think emerging markets are underappreciated and near-term concerns on competition are overblown given ISRG's proven outcomes/ease."
RO predicts robot-assisted procedures will double within the next two years due to increased use for hernia and gall bladder surgeries. "As the Tier 3 hospital market in China is the same size as the entire U.S. hospital market, we think the long-term opportunity to expand the installed base in China is significant and underappreciated," he wrote.
"We see new product cycles, an expanding platform, high hurdles for physician training, and significant financial resources as tail winds to ISRG's competitive position," according to the analyst.