UPDATE: Morgan Keegan Raising Price Target On Intuitive Surgical Corporation

Morgan Keegan is out with a research report on Intuitive Surgical Corporation ISRG after the company reported earnings last night. The price target was raised to $385, and it has a Market Perform rating on shares. In a note to clients, Morgan Keegan writes, "Intuitive Surgical reported solid 2Q results with revenue and EPS exceeding our estimates. Sales outpaced our forecast by 6% (primarily driven by systems), while EPS of $2.91 was 7% better than expected, and augmented by a slightly lower tax rate. Nonetheless, salesforce productivity declined YoY in the 2Q. Management raised 2011 growth guidance, including sales to 19%-21% from 16%-19% and procedures to 27%-29% from 25%-28%. Of note, the revised procedure guidance implies a modest slowing in growth in the 2H of 2011, which suggests a flattish 3Q. With little to pick at in the 2Q and an increase in our 2011 and 2012 EPS estimates, we are raising our price target to $385. We maintain our Market Perform rating as we remain valuation sensitive." Shares of ISRG gained $16.10 in after-hours yesterday to close at $391.00.