Analyst Patrick Wood of Morgan Stanley maintained a Hold rating on Penumbra, with a price target of $266.00.
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Patrick Wood has given his Hold rating due to a combination of factors surrounding Penumbra’s recent performance and future prospects. The company’s stock has experienced a mean reversion following a period of decline, largely attributed to market positioning and the unwinding of fast money. Despite a solid quarterly performance, with notable growth in sales and EBITDA, the market reaction has been tempered by cautious commentary on the Stroke market and the unexpected composition of the earnings beat, which was primarily driven by embolization.
Looking forward, while Penumbra is well-positioned with promising catalysts such as STORM and Thunderbolt, the full potential of these developments is not expected to be realized until 2026. The recent success in the embolization segment, bolstered by the launch of RubyXL and an expanded salesforce, is encouraging. However, the overall impact on the stock’s long-term trajectory remains uncertain, leading to a Hold rating as the market awaits further clarity on the uptake of new products and regulatory approvals.
According to TipRanks, Wood is an analyst with an average return of -0.5% and a 52.90% success rate. Wood covers the Healthcare sector, focusing on stocks such as Becton Dickinson, GE Healthcare Technologies Inc, and Shoulder Innovations, Inc..
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $275.00 price target.