Update on Intuitive Surgical
20th June 2017 |
I’ve recorded an update on our portfolio, highlighting some of our positions and what I think the future holds for them.
First though, I’m raising the buy level for Intuitive Surgical to $1,000.
Intuitive Surgical (ISRG) was on a one-way cruise higher until 9th June when it experienced a sharp pullback. That period of indecision only held the share back for a few days and it is now back at its highs. Considering this is the first consolidation following an impressive advance this year, this is a great opportunity to give it another look.
I think the balance of probability is that it will now succeed in breaking upwards and test the psychological $1,000 level. With that in mind I am raising the buy up to price to $1,000 since the recent pullback looks like nothing more than a pause before striking higher.
From speaking with a bowel surgeon last Friday I would like to relate that an increasing number of surgeons are using the da Vinci system especially for cancer removal where accuracy is crucial. That first-hand report helps to highlight just why the share is doing so well. Her opinion was that in future just about all surgery will be conducted with robots but that further innovation will be required before robots can be trusted with suturing.
We first recommended Intuitive Surgical in April 2016 in our report “The New Medical Frontier”. Intuitive Surgical remains on the cutting edge of this robotic surgery trend, and it stands to reap great benefits from it.
All the best,
Eoin Treacy
Investment Director, Frontier Tech Investor
