Investors should avoid Intuitive Surgical shares now on slowing growth and valuation, according to Goldman Sachs. The stock of the maker of surgery robots is up 17 percent this year.
"Saturation of the U.S. hospital landscape makes growth more dependent on replacement cycle, upgrades, and international expansion. Valuation may start to become challenged, as questions around the multiple (slower growth, competition) begin to percolate," Goldman Sachs' David Roman wrote in a note to clients Thursday.
He added, "The case for material upside to procedure volumes looks stretched."