With Sustained Double-Digit Growth Profile, RBC Starts Coverage On This MedTech Stock

• RBC Capital Markets initiated coverage on Penumbra Inc (NYSE: PEN) with an Outperform rating and a price target of $195 (59% implied upside).

• 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.

• Related: Despite Seeing Accelerated 2023 Growth, This Analyst Cut Penumbra's Price Target - Here's Why.

• 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.

Latest Ratings for PEN

Date	Firm	Action	From	To
Mar 2022	Needham	Initiates Coverage On		Hold
Feb 2022	Citigroup	Maintains		Buy
Feb 2022	JP Morgan	Maintains		Overweight

View More Analyst Ratings for PEN

View the Latest Analyst Ratings

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