Despite a downgrade from Deutsche Bank, Bank of America analysts maintain a “Buy” rating on Intuitive Surgical (ISRG), dismissing concerns over the impact of remanufactured robotic instruments on the company’s dominance.
Restore Robotics recently completed the first human procedure using a remanufactured da Vinci Xi instrument on Intuitive’s latest da Vinci 5 system. While the development drew criticism from Deutsche Bank, which also cited rising competition from Medtronic’s Hugo system, BofA remains confident.
BofA’s Travis Steed emphasized that remanufacturing is not new and has long been accepted by Intuitive, provided FDA clearance is in place. He sees limited long-term disruption, noting that reprocessed instruments may account for only a small segment of the robotics market.
Steed reinforced Intuitive’s advantage in industrial scale and innovation, stating the company’s continued focus on delivering value across patients, physicians, hospitals, and payers.
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