Penumbra: Strong Market Position and Growth Potential Drive Buy Rating

William Blair analyst Margaret Kaczor has maintained their bullish stance on PEN stock, giving a Buy rating on May 29.

Margaret Kaczor has given her Buy rating due to a combination of factors that highlight Penumbra’s strong market position and growth potential. The company’s management expressed confidence in maintaining their vascular portfolio’s market share gains, driven by factors such as a competitor’s salesforce disruption and the anticipated approval and launch of the Thunderbolt product. Additionally, ongoing market access initiatives and promising clinical data, like STORM-PE, are expected to further bolster their market position.
Moreover, Penumbra’s financial outlook is robust, with a projected sales growth of 16%-18% excluding China for the current year. The company is also focusing on expanding its operating margins, which are expected to grow faster than gross margins. These elements, combined with various upcoming catalysts, position Penumbra as a highly attractive investment opportunity with strong sales and earnings growth prospects over the next few years.

Kaczor covers the Healthcare sector, focusing on stocks such as Penumbra, Neuronetics, and Ceribell, Inc.. According to TipRanks, Kaczor has an average return of 5.7% and a 55.67% success rate on recommended stocks.

In another report released on May 29, Wells Fargo also maintained a Buy rating on the stock with a $315.00 price target.