UPDATE: Morgan Keegan Raising Price Target On Intuitive Surgical After Earnings (ISRG)

Morgan Keegan has a Market Perform rating and a $345 price target on shares of Intuitive Surgical Corporation ISRG, up from $330. In a note to clients, Morgan Keegan writes, "Intuitive Surgical reported solid 1Q results with revenue and EPS just modestly exceeding our estimates. Positives in the quarter included a 30% increase (MK 25%) in procedures growth, significant ROW system placements, and a lower tax-rate. Conversely, operating margin of 38.2% came in 50 bps lower than our forecast, SILS in the US appears to be delayed due to the need for additional data for the FDA, and the implied guidance calls for slowing procedure growth in the remainder of 2011. Taken together, the crosscurrents in the 1Q result in no change to our Market Perform rating." Shares of ISRG are down $7.90 in pre-market trading to $356.79, a loss of 2.2%.