Analyst Note| Alex Morozov, CFA |
Intuitive Surgical's strong growth in procedures in the first quarter was the most surprising development in its performance. With a 17% year-on-year recovery, procedures now have returned to the prepandemic level, and the company's confident guidance for a 22%-26% growth in full-year procedures implies significant pent-up demand. We updated our model for the first quarter and incorporated new assumptions for the pace of procedure bounceback; as a result we are raising our fair value estimate to $500 per share. We maintain our wide moat rating for the firm.