Intuitive Surgical spending to drive future sales growth, says Cantor

Cantor Fitzgerald analyst Craig Bijou reiterates an Overweight rating on Intuitive Surgical with a $620 price target following last night’s Q4 results. The company delivered 19% procedure growth, largely driven by U.S. general surgery and worldwide urology, Bijou tells investors in a research note. However, management plans to increase operating expenditures by 20%-28% in 2019, which comes as a surprise, adds the analyst. He expects investors to have an initial negative reaction to the expected significant increase in spending, but thinks the company’s investments will fuel future sales growth and accelerate its pipeline.
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