PEN - Penumbra cut to Neutral at Citi on macro concerns

• The shares of medical device maker Penumbra, Inc. ( NYSE: PEN ) dropped Wednesday after Citi downgraded the company to Neutral from Buy, citing, among other things, the stock's recent outperformance despite macro concerns.
• The analyst Joanne Wuensch notes that PEN rallied 57% in 3Q 2022 after the management during Q2 2022 earnings call and subsequent interactions with brokers highlighted its pipeline and a path to lower investments linked to the REAL virtual reality program.
• "Thus while we are believers in the company's end markets and the pipeline, we are looking at a stock that has rebounded significantly even as multiples compress in an inflationary environment with rising interest rates," the team wrote.
• Citing the above-consensus forecasts for the company's 3Q 2022 revenue and earnings per share, the analysts raise the price target on PEN to $217 from $170.
• Wall Street has remained bullish on Penumbra ( PEN ) stock, with an average rating of Strong Buy from analysts, while Seeking Alpha Authors indicated a Buy rating on the stock. However, Seeking Alpha's quant system, which consistently outperforms the market , rated PEN as a Hold.

For further details see: