Citing 'Lightning Fast Growth,' Needham Upgrades This Vascular Device Company - Penumbra (NYSE:PEN)

Needham upgraded Penumbra Inc PEN to Buy from Hold, with a price target of $244.
The analyst notes that management indicated PEN is seeing stronger growth in 3Q22 due to an improvement in hospital staffing, share gains, or a combination of these.
Penumbra recently announced European approval for RED Reperfusion Catheters, which are part of the company's Penumbra System, a fully integrated mechanical aspiration thrombectomy system designed to restore blood flow in acute ischemic stroke patients.
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The analyst believes the international RED catheter launches should help to drive faster stroke growth as soon as 4Q22.
Needham also writes that the upcoming intelligent aspiration launches should drive faster growth starting in 2023.
In its Neuro business, PEN plans to launch Thunderbolt in 2H23 after it completes its THUNDER IDE trial, which is now underway.
In its Vascular business, the company plans to launch its Lightning Flash and Lightning Bolt products in 2023, which are new versions of its intelligent aspiration system.
The analyst expects the Lightning systems to drive growth through increased thrombectomy market penetration and market share gains.
Price Action: PEN shares are up 2.62% at $202.67 on the last check Friday.