- California-based medical device maker Penumbra, Inc. ( NYSE: PEN ) rose on Monday after RBC Capital Markets initiated its coverage with an Outperform rating and a price target of $195 per share to reflect a ~59% premium to the last close.
- The analysts led by Shagun Singh argue that Penumbra ( PEN ) is operating in an “attractive, high growth, under-penetrated neuro and vascular end-markets” where the total addressable market for ischemic stroke stands at $8.8B globally, including $800M in the U.S.
- “PEN is investing to position itself for continued growth, but the company is profitable with a clear pathway for expanding margins,” the team wrote and called their price target “a reasonable first stop.”
- As for potential catalysts to monitor, RBC notes overseas expansions, a possible increase in operating margin, updated guidance, and launches of THUNDERBOLT and the REAL VR platform.
- Wall Street stands strongly behind the prospects of Penumbra ( PEN ) with no Sell ratings, nine Buy ratings, and only one Hold rating.
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Penumbra gains as RBC initiates at Outperform with 59% upside