Barclays Thinks Intuitive Surgical Is Still Worth $650

Barclays noted that Intuitive Surgical, Inc. (NASDAQ: ISRG) is still valued at $650. In a research note on Friday, Barclays maintained an Overweight rating on the stock commenting, "net-net, this was another excellent quarter and overall, we think ISRG's opportunities outweigh the risks."

Intuitive Surgical released its Q42015 results on Thursday, revealing that its pro-forma revenue grew ~13 percent year over year.

"By segment, instrument and accessory revenue of $231 million was in line with our $229 million service revenue of $120 million," the firm noted. "EPS was $5.89, above consensus expectations and helped by $0.17 for the R&D tax credit."

Commentary Not Surprising

Intuitive Surgical's 2016 commentary was "relatively unsurprising."

Intuitive Surgical's only exception was its op-ex guidance of a 9 to 13 percent increase. "While 2015 started with both procedure and OpX guidance of +7-10 percent, by the end of the year, ISRG was expecting to grow procedures 13-14 percent and OpX only 7 percent generating significant leverage," the firm added.