PEN - Penumbra: Appeal Improves As Operating Leverage Continues

2024-05-30 03:50:45 ET

Summary

• Penumbra, a neurovascular player, has experienced solid topline growth over the past decade, now accompanied by operating leverage.
• Shares have fallen 20% from February levels, making them more appealing, but valuations are still demanding.
• The company's focus on removing clots and treating aneurysms has led to strong growth, as I am willing to dip my toes into the water on further dips.

In February, I concluded that solid was not good enough in the case of Penumbra ( PEN ) . The innovative player in the neurovascular market has been enjoying solid topline growth and displayed strength on operating leverage, both quite compelling, although slower growth raised concerns....

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