Canaccord Genuity analyst William Plovanic has maintained their bullish stance on PEN stock, giving a Buy rating today.
William Plovanic has given his Buy rating due to a combination of factors surrounding Penumbra’s financial performance and future growth prospects. Despite a slight miss in their Q4 earnings, the company’s overall revenue showed a robust year-over-year increase, and adjusted EBITDA was nearly in line with expectations. Plovanic also acknowledges the company’s commitment to profitability and the anticipation of an acceleration in the core US thrombectomy market. He notes the strategic discontinuation of unprofitable products and markets internationally, which is expected to set the stage for a stronger performance outside the US in 2025.
Further supporting the Buy rating, Penumbra’s initial guidance for 2024 indicates healthy year-over-year growth, closely aligning with analyst expectations. The company’s detailed guidance suggests a strong focus on the US market, projecting significant growth in thrombectomy revenues and a steady contribution from embolization and access segments. Penumbra’s strategic moves, including the launch of new CAVT products and the expansion of their commercial team, are seen as instrumental in driving US growth in 2024 and establishing a solid foundation for international growth the following year. Plovanic’s confidence in Penumbra is also bolstered by the company’s projected gross and operating margin expansion, further solidifying the Buy rating and the $284 price target.
In another report released today, Piper Sandler also reiterated a Buy rating on the stock with a $290.00 price target.
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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.
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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.
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