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Analysts Ponder Over Recent Possibility of Intuitive Surgical Inc (NASDAQ:ISRG)’s Shares To Bounce Back

Boston, MA 03/04/2014 (wallstreetpr) – Intuitive Surgical Inc (NASDAQ:ISRG) has been declining over the past few years, but recent trends show there might be changes in its growth pattern.

There have been controversies in the medical community surrounding the efficiency of the company’s da Vinci Robotic Surgical System which offers hysterectomies treatments. Apart from this, the shares saw further downfall with the announcement of the Obamacare, the Affordable Care Act. In 2013, its shares declined almost 40%. Although if the company history is traced, it can be seen that Intuitive’s start was pretty profitable after it went public in 2000.

Intuitive’s Downfall

Soon after the introduction of the Act in the U.S., not only did shares of Intuitive fell, so did the sales of its da Vinci Systems too. Intuitive Surgical Inc (NASDAQ:ISRG)’s fourth quarter earnings, which it shared on Jan 23, reported sales of the Systems declining to 138 as compared to 175 during the same quarter of the prior year. Its revenue decreased year over year and it reported $576 million for the quarter which is 5% less than the same quarter of 2012.

Possible Surge

According to some analysts, the company’s stock could a turn by 2015 and it would report double digit EPS growth. This is backed by a study conducted by Dr. Martin Martino of the Lehigh Valley Health Network who published his findings in the Journal of Minimally Invasive Gynecology. According to him, hysterectomy procedures carried out with Intuitive Surgical Inc (NASDAQ:ISRG)’s Systems results in lesser readmission of patients for the treatment. It also has advantages of requiring short hospital stay durations and an overall low expense for treatment.

Negative Views

On the other hand, some analysts believe that the journal and its claims could be a reason for a one time hike in the stock but it could not promise long term benefits. A major contributing factor is the changing medical system in the U.S. because of the Obamacare Act.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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