Intuitive Surgical Upgraded to Buy by Citi — Plus Key Moves on Stryker and Abbott

Core Viewpoint - Citi upgraded Intuitive Surgical to Buy, maintaining Buy ratings on Stryker and Abbott, citing strong fundamentals in the medical technology sector despite market volatility [1][2] Summary by Company Intuitive Surgical - Upgraded from Neutral to Buy with a new price target of $590, reflecting a strong double-digit growth trajectory despite a 14.2% year-to-date decline in stock price [1] - Q4 2025 revenue was $2.87 billion, up 18.76% year-over-year, with non-GAAP EPS of $2.53, exceeding estimates [1] - The da Vinci 5 platform saw 303 system placements in Q4, a significant increase from 174 in the same quarter the previous year [1][2] Stryker - Maintained Buy rating with a price target of $420, and a 90-day catalyst watch added to monitor near-term developments [1] - Achieved over $25 billion in annual revenue for the first time in 2025, with full-year revenue of $25.12 billion, up 11.16% [1] - Adjusted EPS guidance for 2026 is between $14.90 and $15.10, indicating a stable growth outlook [2] Abbott - Buy rating maintained, but price target lowered to $136 from $140, reflecting a modest growth profile [1] - Q4 revenue was $11.46 billion, a 4.42% year-over-year increase, with the medical devices segment showing growth [1] - The pending $21 billion acquisition of Exact Sciences is expected to enhance Abbott's long-term growth potential [1][2] Market Context - The VIX index surged to 25.50, indicating increased market volatility, which has compressed valuations across the medical technology sector [1] - Intuitive Surgical's stock trades at approximately 49x forward earnings, reflecting its growth rate and competitive position in robotic-assisted surgery [1] - Stryker's forward P/E is around 24x, while Abbott's is near 20x, indicating a more conservative valuation approach for income-oriented investors [2]