Penumbra’s Strong Q1 Performance and Strategic Positioning Justify Buy Rating Despite Conservative FY25 Guidance

Analyst William Plovanic of Canaccord Genuity maintained a Buy rating on Penumbra (PEN – Research Report), retaining the price target of $340.00.

William Plovanic has given his Buy rating due to a combination of factors that highlight Penumbra’s strong performance and future potential. The company has demonstrated a robust beat-and-raise scenario, surpassing expectations in its first-quarter results with significant revenue and earnings beats. Penumbra’s Q1 revenue outperformed both Canaccord Genuity’s and consensus estimates, driven largely by its success in the US thrombectomy market, where it continues to gain market share.
Despite the strong performance, Penumbra’s management has adopted a conservative approach to its FY25 guidance, particularly due to the exclusion of China revenue because of tariffs. However, the company’s operations are largely insulated from these tariff impacts, and it is expected to continue benefiting from volume-based share gains in various product lines. This strategic positioning, along with the potential upside from new products like Thunderbolt, supports the reaffirmation of the Buy rating and the $340 price target.

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