UPDATE: BTIG Initiates Coverage On Intuitive Surgical

In a note released Tuesday, BTIG Equity Research analyst Sean Lavin M.D. initiated coverage on Intuitive Surgical (NASDAQ: ISRG) with a Neutral rating, but has yet to set a price target.

Lavin explained he is optimistic on the long-term outlook of the stock, but sees near-term troubles.

He wrote, "we expect two to three more quarters of very weak system sales and consensus revenue and earnings misses... All told, we see shares cheaper over the next one - six months and more expensive in about 18 months."

Below are some key points Lavin provided in the note.

The Good

• Significant advantages to robotic surgery.
• He is "very bullish" on adoption of robotic surgery in the long-term.
• 2015 results expected to be "very strong" compared to 2014.
• Xi expected to enable general surgery.
• The company's shares are cheaper than usual, making it a "likely and potential" M&A target.

The Bad

• Pressure on simple dvH procedures is expected to continue.
• Negative noise could lessen demand .
• Hospitals focusing more on cost of robotics.