Penumbra, Inc. (PEN, Financial) has received a boost in its price target from Baird analyst David Rescott, who has raised the projection from $316 to $325. The decision comes in the wake of Penumbra's impressive first-quarter results, which have exceeded expectations.
The company's performance has been further bolstered by optimistic forecasts related to its THUNDERBOLT technology, which is anticipated to drive future growth. Rescott maintains an Outperform rating for Penumbra, signaling confidence in the company's continued positive trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Penumbra Inc (PEN, Financial) is $315.76 with a high estimate of $340.00 and a low estimate of $260.00. The average target implies an upside of 13.27% from the current price of $278.77. More detailed estimate data can be found on the Penumbra Inc (PEN) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Penumbra Inc's (PEN, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Penumbra Inc (PEN, Financial) in one year is $305.05, suggesting a upside of 9.43% from the current price of $278.77. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Penumbra Inc (PEN) Summary page.
PEN Key Business Developments
Release Date: April 23, 2025
- Total Revenue: $324.1 million, 16.3% year-over-year growth reported, 16.9% in constant currency.
- US Thrombectomy Revenue: $187.9 million, 25% year-over-year growth.
- Gross Margin: 66.6%, expanded 160 basis points from the prior year.
- Operating Income: $40.4 million, 12.4% of revenue, increased 550 basis points from the prior year.
- Adjusted EBITDA: $59.6 million, 18.4% of total revenue.
- Cash and Equivalents: $378.8 million, no debt, increased by $38.7 million sequentially.
- International Revenue: Decreased 2.5% reported, 0.1% in constant currency, impacted by a decline in China revenue.
- Embolization and Access Revenue: $97.6 million, 7.3% reported growth, 8.1% in constant currency.
- Research and Development Expenses: $22.1 million, 6.8% of revenue.
- SG&A Expenses: $153.5 million, 47.3% of revenue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Penumbra Inc (PEN, Financial) reported a strong revenue growth of 16.3% year-over-year, reaching $324.1 million in the first quarter of 2025.
- The US thrombectomy business saw a significant increase of 25% year-over-year, with the VTE franchise leading with a 42% growth.
- Gross margin improved by 160 basis points to 66.6%, with expectations to exceed 70% by the end of 2026.
- The company received FDA clearance for Ruby XL earlier than expected, indicating strong regulatory progress.
- Penumbra Inc (PEN) ended the quarter with a robust cash position of $378.8 million and no debt, highlighting strong financial health.
Negative Points
- International revenue decreased by 2.5% due to a significant decline in China revenue, which is expected to continue impacting the second quarter.
- The company faces macroeconomic headwinds in China, leading to the exclusion of $5 million from the revenue forecast.
- Operating expenses remain high, with SG&A expenses accounting for 47.3% of revenue, driven by investments in commercial and market access teams.
- The company anticipates flat or slightly lower gross margins in Q2 2025 due to expedited manufacturing investments for new product launches.
- Penumbra Inc (PEN) is cautious about raising guidance despite strong Q1 performance, reflecting a conservative approach amidst market uncertainties.
