Deep Dive Into Penumbra Stock: Analyst Perspectives (6 Ratings)

During the last three months, 6 analysts shared their evaluations of Penumbra (NYSE:PEN), revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $269.0, a high estimate of $295.00, and a low estimate of $240.00. Witnessing a positive shift, the current average has risen by 1.32% from the previous average price target of $265.50.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Penumbra. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Penumbra. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Penumbra compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Penumbra's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Penumbra's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Penumbra analyst ratings.

Unveiling the Story Behind Penumbra

Penumbra Inc develops and manufactures medical devices for the neurovascular and peripheral vascular markets. Its products are primarily sold to hospitals and are developed for use by specialist physicians. The neurovascular product category contributes to the majority of revenue. Within the neurovascular business, the firm offers products for neurovascular access, ischemic stroke, neurovascular embolization, and neurosurgical tool markets. In the peripheral vascular business, the firm sells devices related to peripheral embolization and peripheral thrombectomy. Penumbra generates the majority of its revenue in the United States.

Penumbra's Economic Impact: An Analysis

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Penumbra's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 26.8%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Net Margin: Penumbra's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.4%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Penumbra's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.85%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.64%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.21.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.