UPDATE: Bank of America Merrill Lynch Raises PO on Intuitive Surgical to $385

Bank of America Merrill Lynch is out with its report today on Intuitive Surgical ISRG, raising its PO from $365 to $385. In a note to clients, Bank of America Merrill Lynch writes, "We are raising our 2011-2012 revenue estimates for ISRG to $1,692mm and $1,996mm respectively or 20% and 18% growth. Our new 2012 EPS estimates are $11.35 and $13.35, also representing 20% and 18% growth. We are adjusting our 12-month P.O. for ISRG to $385 (up from $365), with our new P.O. based on 29x our 2012 earnings estimate. We can find no meaningful holes to poke in Q2 and we believe ISRG could see additional upside to procedure estimates in 2H:11, but we are remaining at neutral based primarily on valuation." Shares of ISRG closed Tuesday at $374.90, up 3.48% from Monday's close.