Needham analyst Michael Matson has maintained their neutral stance on PEN stock, giving a Hold rating today.
Michael Matson has given his Hold rating due to a combination of factors concerning Penumbra’s recent financial performance and future growth expectations. Penumbra’s fourth-quarter revenue for 2023 fell slightly short of the anticipated figures, although the earnings per share surpassed consensus. The company’s vascular segment showed promising growth, driven by new product introductions such as Lightning Flash and Bolt. However, the neuro segment’s growth decelerated, failing to meet the consensus. Despite a positive outlook on the CA VT product cycle and projected growth in the US thrombectomy market, the overall guidance for 2024 revenue did not align with consensus expectations, especially in the latter half of the year, against tougher comparatives.
Furthermore, while Penumbra demonstrated significant operational efficiency, with notable improvements in both gross and operating margins, the valuation of the stock and the anticipated ramp-up in growth during a period of more challenging comparatives in the second half of 2024 raise concerns. Matson’s assessment reflects caution, balancing the company’s operational strengths and product-driven growth potential against the market’s high expectations and the uncertainties surrounding the guidance for stronger growth later in the year. This leads to the conclusion that maintaining a Hold rating is appropriate until clearer signs of sustainable growth emerge or valuation becomes more attractive.
In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $250.00 price target.
See today’s best-performing stocks on TipRanks >>
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PEN in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Penumbra (PEN) Company Description:
Penumbra, Inc. engages in the design, development, manufacture, and marketing of innovative medical devices. It offers thrombectomy, embolization, access, neurosurgical tools, ruby coil system, lantern, penumbra occlusion device (POD) system, packing coil, and indigo systems products. Its target markets include interventional neuroradiologists, neurosurgeons, and interventional neurologists; and interventional radiologists, vascular surgeons, and interventional cardiologists. The company was founded by Arani Bose and Adam Elsesser on June 21, 2004 and is headquartered in Alameda, CA.
Read More on PEN:
