Wells Fargo said that based on early feedback from physicians, the recent launch of Penumbra's ( NYSE: PEN ) Lightning Flash mechanical thrombectomy system will boost growth for the company.
The device is used for deep vein thrombosis (DVT) and pulmonary emboli ( PE ).
Analyst Larry Biegelsen said that Lightning Flash, which launched on Jan. 10 , will not only benefit Penumbra ( PEN ), but other companies in the peripheral thrombectomy space, such as Inari Medical ( NASDAQ: NARI ), because the market to treat thrombosis is underpenetrated.
Wells Fargo has outperform ratings on both companies. For Penumbra, the price target is $255 (~6% upside based on Wednesday's close). For Inari ( NARI ), it is $105 (~61% upside).
Biegelsen projects peripheral mechanical thrombectomy sales of $313M for Penumbra in in 2022, and $409M this year.
He added that the feedback on Lightning Flash bodes well for the company's next launch, Lightning Bolt, a computer-orchestrated aspiration catheter for arterial clots, expected in late Q1.
Biegelsen noted that Inari ( NARI ) estimates US incidence of PE of ~280K and DVT of ~430K, a total addressable market representing $5.8B. Also, the company believes that both markets remain significantly underpenetrated: ~30% for PE and 20% for DVT.
Both Penumbra ( PEN ) and Inari ( NARI ) were recently viewed as buys by Canaccord Genuity in a report on how med-tech companies could be a defensive sector for healthcare investors in 2023 .
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Penumbra's new thrombosis system will drive growth in underpenetrated markets: Wells Fargo