Canaccord Genuity Lowers Intuitive Surgical to Hold

Shares of Intuitive Surgical were barely lower Tuesday morning after Canaccord Genuity downgraded the medical device maker’s stock to hold from buy while reiterating an $870 price target. The brokerage said it downgraded the stock to hold as it believes Intuitive Surgical’s current valuation “eclipses solid fundamentals,” and is “stretched more today than at any other point” in the company’s 20-year history as a public company.

With the stock currently trading at record P/E and normalized PEG levels, Canaccord said it believes the stock seems “exorbitantly rich” versus its large-cap med-tech peer and also compared to the stock’s own historical valuation levels. Although the brokerage expects the company to report “solid results in 2017 and 2018,” it also said the “risk/reward setup tilts too much to the former at present,” which called for a downgrade to hold.

Leave A Reply

Your email address will not be published.