Why Intuitive Surgical Stock Plunged Today

Core Viewpoint - Deutsche Bank has downgraded Intuitive Surgical stock to "sell" with a price target of $440, indicating a potential downside of over 16% [3]. Group 1: Company Overview - Intuitive Surgical is known for its da Vinci surgical platform, which has over 10,000 systems in service globally and performs more than 3 million robotic surgeries annually [3]. - The stock has experienced a decline of 5.5% in value during recent trading [1]. Group 2: Business Risks - Deutsche Bank highlights risks in Intuitive Surgical's "Instruments and Accessories" business, where third-party companies are remanufacturing old surgical instruments, potentially impacting revenue [4]. - The bank warns that this could reduce U.S. Instruments and Accessories revenue by as much as 46% [4]. Group 3: Financial Performance and Valuation - Intuitive Surgical's stock is currently trading at a high valuation of 82 times trailing earnings, necessitating a strong growth rate to justify this price [5]. - Analysts project an annual earnings growth of only 16% over the next five years, which may not be sufficient for a growth stock [5].