Goldman Sachs Says the Crowd Is Wrong on This Beaten-Down Medical Robotics Giant

Intuitive Surgical (ISRG) has dropped 26% over the past year, pressured by weaker-than-expected margins from its da Vinci 5 robotic surgery system launch and rising tariff-related costs. Goldman Sachs analyst David Roman sees the selloff as overdone, maintaining a buy rating with a $558 price target that implies 47% upside from current levels.

Roman's thesis centers on the da Vinci 5's differentiated capabilities, particularly Force Feedback Technology, which he believes can unlock new surgical use cases and drive higher-margin recurring revenue streams. The system's advanced features position Intuitive to capture share in a robotic surgery market that remains significantly underpenetrated, according to the analyst.

The stock's decline reflects near-term margin compression as the company scales production and absorbs tariff costs. But Goldman argues the market is mispricing the long-term opportunity, viewing temporary headwinds as structural problems rather than launch-phase growing pains.