Intuitive Shares Fall on Systems Weakness, but We View Long-Term Drivers Intact

While wide-moat Intuitive's systems sales decline is in the headlines, we've been vocal about near-term challenging dynamics for da Vinci placements, and incorporated them in our forecasts. Thus, the second-quarter results aren't leading to any changes in our valuation. Our focus remains on the three key drivers of long-term value creation for the company: procedure growth (that was strong in the quarter), systems utilization trends (that continue to suggest growing adoption among existing customers), and investment deployment (that is proceeding as planned).