Penumbra: Rating Cut to Hold as Boston Scientific Takeout Caps Upside at $374 Deal Price

Penumbra, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst William Plovanic from Canaccord Genuity downgraded the rating on the stock to a Hold and gave it a $374.00 price target.

William Plovanic has given his Hold rating due to a combination of factors tied primarily to the announced acquisition of Penumbra by Boston Scientific. The deal values Penumbra at $374 per share in a stock-and-cash transaction of roughly $14.5 billion, and he now expects the shares to trade in line with this agreed takeout price rather than on standalone fundamentals. He notes that Boston Scientific gains a leading thrombectomy and embolization franchise with strong clinical backing, and that Penumbra’s neurovascular business should benefit from future product clearances under Boston Scientific’s ownership. At the same time, the analyst sees limited likelihood of competing bids emerging, which constrains further upside beyond the agreed consideration.

Plovanic also incorporates Penumbra’s better‑than‑expected preliminary fourth‑quarter revenue and solid, though slightly mixed, margin performance into his updated model. However, given that the acquisition terms largely cap the stock’s appreciation potential and establish a clear valuation reference point, he no longer views Penumbra as a Buy on a risk‑reward basis. Instead, he raises his price target to the $374 deal price and moves to a Hold rating, reflecting the view that the shares are now fairly valued under the proposed transaction. In effect, his stance shifts from a fundamentals‑driven growth thesis to a deal‑driven valuation framework, with the main remaining variables being deal closure timing and standard transaction risks.