Penumbra: Accelerating Growth, Margin Upside, and 2026+ Catalysts Support Overweight (Buy) Rating

In a report released today, Robbie Marcus from J.P. Morgan maintained a Buy rating on Penumbra, with a price target of $370.00.

Robbie Marcus has given his Buy rating due to a combination of factors that, in his view, materially enhance Penumbra’s growth and earnings outlook heading into 2026 and beyond. He expects a reversal of prior pressures, notably the China-related drag on 2025 revenue that should not recur, and sees multiple upcoming product and clinical catalysts—such as Thunderbolt in stroke and the STORM PE data in pulmonary embolism—as drivers of faster procedure and market growth. In peripheral thrombectomy, particularly the U.S. venous segment, he anticipates strong double-digit expansion supported by recent and forthcoming trial results, while arterial and coronary are also projected to sustain healthy growth as newer products like Bolt 6x continue to ramp. He further highlights the opportunity to penetrate a large, previously under-served neuro embolization population with the Swift coil line, which should support incremental sales and enhance the overall growth profile.

Marcus also emphasizes that many of these growth drivers should be favorable for margins, implying that earnings per share could exceed current consensus despite already robust 30%+ EPS growth forecasts. His updated model, which breaks out the company’s main U.S. thrombectomy and embolization segments, leads him to expect upward revisions to both revenue and earnings estimates from 2026 onward. On valuation, he argues that assigning a December 2026 price target of $370—equating to about 7.5x projected 2027 enterprise value to sales—appropriately reflects Penumbra’s improving fundamentals, strong competitive position, and exposure to attractive end-markets. Given this combination of accelerating top-line growth, operating leverage, and identifiable catalysts, he concludes that the stock’s risk/reward profile justifies an Overweight (Buy) recommendation.

Marcus covers the Healthcare sector, focusing on stocks such as Penumbra, Cooper Co, and Boston Scientific. According to TipRanks, Marcus has an average return of 8.3% and a 51.18% success rate on recommended stocks.

In another report released yesterday, Canaccord Genuity also maintained a Buy rating on the stock with a $359.00 price target.