J.P. Morgan Maintains ISRG Neutral Rating, $280 PT

J.P. Morgan is maintaining its Neutral rating and $280 PT on Intuitive Surgical, Inc. ISRG. “Following several med tech pre-announcements, the comfort factor into 4Q results had increased, but the key debate, in our view, was about procedure guidance, which came in at 25-28% (vs. our 28% projection and 35% reported for 2010),” J.P. Morgan writes. “Nonetheless, 4Q proved better than expected overall, with revenue growth of 21% ($389M) vs. 14% consensus and JPMe (both $367M), aided by 35% procedure growth and strong da Vinci placements (124 in total), although 91 net installs were below our 101 system estimate, while on the bottom line, leverage from buybacks and a lower tax rate drove another quarter of upside (+$0.78 vs. consensus). “Turning to the outlook, the bar for 2011 (+25-28% procedures, +16-20% revenues) is likely to leave some cushion, although lower ASPs (due to mix) and increased seasonality are increasing factors, while drivers such as Japan, single port and the stapler are unlikely to be material in the near-term.” Intuitive Surgical closed Thursday at $289.83.