Recommendation (Mar 2020)
Surgery as a means to investigate and treat pathology dates back many millennia and continues to be an essential branch of medicine. There is widespread agreement on the benefits of robot-assisted surgery (RAS), driving a growing demand from hospitals worldwide. RAS’s complex and life-critical nature yields a winner-take-most landscape. The clear leader in this space is Intuitive Surgical – and has been over the past two decades.
The two narratives presented in this report yield an intrinsic value range of $474 to $548. At $438, the stock offers an 8-20% margin of safety. I recommend a Buy.
TSR: With a 7-year hold period, and a EV/NOPAT multiple contraction from 47 (2019) to 42 (2026), yields a TSR of 13% CAGR and a 240% total gain.
For the full report, see link below