With Market Expectations Around System Placements Reset, Intuitive's Q3 Should Be Viewed Positively

As was the case with many growth companies, Intuitive's shares had been battered earlier in the year, down nearly 50% off their peak. Aside from the general rerating of high-growth firms, the market was also digesting Intuitive's revenue growth deceleration, which was mainly attributable to declining systems placements. With expectations around a systems growth reset (a trend we've been highlighting for quite some time now), the company's third-quarter results should be viewed favorably as many key value drivers for the business remain intact. As shares currently trade in 3-star territory, valuation is no longer unreasonable. We maintain our wide moat rating and $204 fair value estimate.