The analysts write that Penumbra is a medical device company operating in attractive, high-growth, under-penetrated neuro and vascular end markets.
RBC writes that PEN is investing to position itself for continued growth, but the company is profitable with a clear pathway for expanding margins.
RBC believes Penumbra is attractively positioned to be an innovator and leader in ischemic stroke. The company operates in an $8.2 billion global addressable market for ischemic stroke, including $800 million in the U.S.
"It holds a leading market share position in the aspiration segment of the U.S. ischemic stroke market where it is poised to be a leader driven by its robust portfolio (e.g., RED series and THUNDERBOLT) despite a dynamic competitive landscape," the analysts note.
There is a significant opportunity outside the U.S. PEN's neuro franchise (~40% sale mix) is expected to deliver a 3-year sales CAGR in the high-single digits, RBC writes.
Price Action: PEN shares are down 0.59% at $121.78 during the market session on the last check Monday.
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