PEN - Baird starts Penumbra at outperform citing revenue growth potential

2023-07-19 19:34:58 ET

Baird has initiated coverage of medtech Penumbra ( NYSE: PEN ) with an outperform rating, citing its high revenue growth potential.

Calling Penumbra a "leading innovator" in the multi-billion dollar neuro/vascular mechanical thrombectomy market, the investment bank said in a note that Penumbra was entering a period of multiple differentiated product cycles that it sees as "meaningfully accelerating top-line growth."

Baird said that it saw multiple drivers to support a revenue growth profile of at least 18% for the years 2022 through 2025, "with plenty of levers for potential upside over the next two to three years." It added that the company was also in the "early innings" of an inflecting profitability profile.

Baird's price target for the stock is $375.

More on Penumbra:

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Penumbra: Impressive, But Running A Bit Hot

Penumbra: Future Upside Drivers In Fundamental, Sentimental And Valuation Factors

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