In a report released on February 22, David Rescott from Robert W. Baird maintained a Buy rating on Penumbra (PEN – Research Report), with a price target of $291.00.
David Rescott has given his Buy rating due to a combination of factors including Penumbra’s significant presence in the neurovascular and vascular markets, and its anticipated sustainable growth. Despite the fiscal year 2024 guidance falling below high expectations, the company’s U.S. revenue and U.S. thrombectomy sectors are expected to grow robustly, at 22-25% and 27-30% respectively. This speaks to the strength of Penumbra’s core business and its potential to expand margins and operating margins through product cycles that drive mid-to-high teens growth into fiscal year 2025.
Furthermore, Rescott recognizes the company’s strong product pipeline and strategic international market adjustments as key drivers for future growth. Penumbra’s anticipated growth in the U.S. thrombectomy market is particularly notable, with model projections of significant growth in the coming years. Moreover, the expected launch of four new CAVT products, including the FDA-cleared FLASH 2.0, suggests potential market expansion and increased product utilization. These factors collectively underpin Rescott’s positive outlook on Penumbra’s stock, justifying the Buy rating.
In another report released on February 23, Canaccord Genuity also maintained a Buy rating on the stock with a $284.00 price target.
PEN’s price has also changed slightly for the past six months – from $252.440 to $262.680, which is a 4.06% increase.
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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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