Market Overview

Penumbra Has Challenged The 'Paradigm' Of Stroke Treatment; William Blair Initiates At Outperform

Share:

Penumbra Inc (NYSE: PEN) shares trended higher Wednesday on the confidence of one new analyst.

The Rating

William Blair analyst Kaila Krum initiated coverage with an Outperform rating.

The Thesis

Penumbra boasts stable footing in the stroke market, having “challenged the paradigm of treatment,” according to Krum.

Its neurovascular aspiration system for ischemic strokes can tap into a $1.5 billion domestic opportunity only 15-percent penetrated by mechanical thrombectomies, and this particular market may be striking an inflection point, with competition offset by market growth.

“We believe the mechanical thrombectomy market can grow 20 percent-plus for the next two to three years, with Penumbra’s aspiration technology outpacing that growth,” Krum wrote in a Wednesday note.

At the same time, Penumbra’s portfolio for venous and arterial clots brings a $480 million opportunity expected to expand to $520 million by the end of 2019. Additional innovations could broaden its reach to intracerebral hemorrhage and coronary thrombosis indications.

“Shares of Penumbra trade at a premium to the rest of its med tech peers on a revenue basis (8.0 times our 2018 estimate and 6.8 times our 2019 estimate), although we believe that the premium is warranted given its superior growth profile; vast, underpenetrated market opportunity; and differentiated aspiration technology,” Krum wrote.

Price Action

At time of publication, shares were trading up 1.7 percent at $101.05.

Related Links:

Pharma M&A Picks Up Momentum

FDA Watchlist: Catalysts To Look Out For This February

Latest Ratings for PEN

DateFirmActionFromTo
Oct 2020Canaccord GenuityAssumesBuy
Sep 2020BTIGInitiates Coverage OnBuy
Sep 2020B of A SecuritiesDowngradesBuyNeutral

View More Analyst Ratings for PEN
View the Latest Analyst Ratings

 

Related Articles (PEN)

View Comments and Join the Discussion!

Posted-In: Kaila Krum William BlairAnalyst Color Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
INTCJP MorganMaintains70.0
STMCanaccord GenuityMaintains47.0
ELDeutsche BankMaintains248.0
UAADeutsche BankMaintains13.0
INTCDeutsche BankMaintains55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com