William Blair Remains Bullish on Intuitive Surgical (ISRG)

Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the 11 Best Drug Stocks to Buy According to Hedge Funds. On June 10, William Blair analyst Brandon Vazquez maintained their bullish stance on Intuitive Surgical, Inc. (NASDAQ:ISRG), giving it a Buy rating. The analyst based the optimistic rating on the company’s present market position and future prospects.

Although concerns exist that remanufactured instruments may potentially impact growth, the analyst believes that the absence of third-party verification participation and the restricted availability of FDA-cleared remanufactured instruments are expected to hinder their widespread adoption.

A medical team performing minimally invasive surgery with a da Vinci Surgical System.

He also reasoned that robotics programs are costly and often carry risks, which is why hospitals may be cautious about operating outside Intuitive Surgical, Inc.’s (NASDAQ:ISRG) ecosystem. This hesitant approach could deal with the effects of remanufacturing concerns on the company’s operations.

While the analyst acknowledges that there are risks that need to be monitored, Intuitive Surgical, Inc. (NASDAQ:ISRG) has solid overall fundamentals that support the optimistic rating. The company is the third best drug stock to buy now according to hedge funds.

Intuitive Surgical, Inc. (NASDAQ:ISRG) has an elaborate ecosystem of services and products that provides robotic-assisted surgical solutions and invasive care. Its products include the Ion Endoluminal and the Da Vinci Surgical systems.

While we acknowledge the potential of ISRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.