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Intuitive Surgical Inc. (ISRG)
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ECN Capital Corp. (ECN)
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Andlauer Healthcare Group Inc. Subordinate Voting Shares (AND)
Q: What is your outlook for ECN and AND and why ? I'm thinking of selling one or both to finance a purchase of ISRG ........
5i Research Answer:
While we like ISRG as a potential core holding for healthcare exposure, its current valuation as usual is high, so it may not offer the same giant returns as the past year (83%), unless growth surprises well to the upside. We think investors can wait for opportunities at a more attractive valuation to switch completely, or investors can just gradually trim and add to ISRG over time to average into the position.
Between ECN and AND, we think AND is a more solid name to own for the long term, especially after the company just accelerated its buyback recently. We would prefer ISRG over ECN, though the latter has been acting better recently.