Penumbra’s Strategic Positioning and Growth Potential Justify Buy Rating

Analyst Travis Steed from Bank of America Securities maintained a Buy rating on Penumbra (PEN – Research Report) and keeping the price target at $320.00.

Travis Steed has given his Buy rating due to a combination of factors that highlight Penumbra’s strategic positioning and growth potential. On the neuro side, Penumbra’s long-standing experience in navigating the VAC process and its plans to present Thunderbolt data at major stroke conferences post-approval indicate a robust strategy for market penetration. The company’s RED 72 product is also noted for its superior tracking capabilities, which facilitates easier adoption by physicians, thereby strengthening its market position.
On the vascular side, Penumbra is experiencing significant growth, particularly in the pulmonary embolism segment, driven by strong word-of-mouth among physicians. The company’s collaboration with Vizient to demonstrate higher hospital profit margins for treating patients with CAVT versus traditional anticoagulation treatments underscores its innovative approach. Additionally, the anticipated results from the STORM-PE trial could serve as a major catalyst for further market expansion. These factors, combined with Penumbra’s leading growth in the underpenetrated VTE market, support the Buy rating.

In another report released on May 9, Piper Sandler also maintained a Buy rating on the stock with a $330.00 price target.

PEN’s price has also changed moderately for the past six months – from $237.840 to $275.320, which is a 15.76% increase.