Morgan Stanley Identifies Growth in Two Surgical Robotic Stocks
Morgan Stanley highlights two surgical robotic stocks with strong growth potential, attracting investor interest in the medical technology sector
Surgical Robotics, Morgan Stanley, Intuitive Surgical, PROCEPT BioRobotics, Sunnyvale, California
Sunnyvale: Recently, there’s been a noticeable rise in chronic diseases and surgical procedures. While it’s concerning that chronic diseases are on the rise, it also means there’s a growing demand for advancements in medical treatments.
This trend is driving the increase in surgical procedures, as new techniques are developed to tackle tough health issues. A study suggests that the global surgical robotics market could reach $28.54 billion by 2031, with a solid growth rate of 13.7%. This kind of growth is definitely catching the eye of investors.
Analysts at Morgan Stanley are on board with this potential. They’ve identified two surgical robotic stocks that they believe are worth buying this year. We dug into the details of these picks to see what Wall Street thinks and why Morgan Stanley is optimistic about them.
The first stock is Intuitive Surgical (ISRG). This company is all about creating robotic surgical devices. They focus on minimally invasive surgeries, which are generally safer and more effective than traditional methods. Their flagship product is the da Vinci robotic surgical system, and they recently got FDA approval for the latest version, da Vinci 5.
The da Vinci 5 system has over 150 improvements, including better design and tremor controls for more precise movements. It also boasts enhanced image processing and computing capabilities, making it more efficient and comfortable for surgeons to use.
Earlier this month, Intuitive published a study showing that their robotic systems have provided significant benefits over the past 12 years, like less blood loss and shorter hospital stays. Investors are taking notice, as Intuitive’s stock has surged nearly 60% this year, thanks to their expansion efforts.
In the last quarter, they installed 379 new da Vinci systems, bringing their total to over 9,500 systems worldwide. Their revenue for Q3 hit $2.04 billion, a 17% increase from last year, beating expectations.
Looking ahead, Morgan Stanley’s analyst Andrew Ranieri believes the da Vinci 5 will open up new surgical areas. He’s optimistic about the stock, giving it a Buy rating with a price target of $650, suggesting a potential 21% upside.
The second stock on the list is PROCEPT BioRobotics (PRCT), which is focused on robotic surgery for men’s health. They’ve developed a unique treatment system for urological conditions, addressing a sensitive area that many patients often avoid due to potential side effects.
PROCEPT’s Aquablation therapy is the only heat-free waterjet system for treating benign prostatic hyperplasia. Their new HYDROS system, cleared by the FDA, uses AI to enhance image recognition and tailor treatment plans for patients.
PROCEPT’s stock has nearly doubled this year, and their recent Q3 results showed a 66% revenue increase, beating estimates. Although they reported a net loss, it was better than expected, which is a positive sign.
Analyst Patrick Wood sees great potential in PROCEPT’s products and believes the stock is undervalued. He’s given it a Buy rating with a price target of $105, indicating a possible 26% upside.
With both stocks showing strong performance and growth potential, it’s an exciting time for investors interested in the surgical robotics market.