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

  • Penumbra Inc PEN reported Q1 sales that beat Street expectations, driven by Vascular upside, and reiterated its 2022 revenue guidance. 
  • Wells Fargo lowered the price target to $265 from 321, which is equivalent to a 52.2% upside. 
  • At 9.5x (down from 12x as peer group valuation has been compressed) with a 2023 sales estimate of $1.02 billion, PEN shares would trade essentially in line with its peers, analysts write.
  • Q1 revenue of $203.9 million (+21.8% ex-FX) beat the consensus of $195.04 million and Wells Fargo's estimate of $195.2 million, including $5 million from an earlier-than-expected start of vascular thrombectomy sales in China, notes Wells Fargo.
  • For 2022, the company maintained its revenue guidance of $860 million -$875 million. 
  • With multiple new Neuro and Vascular launches expected over the next 18 months, PEN expects its revenue growth to accelerate in 2023, which puts the company well on track to exceed $1 billion in total revenue next year. 
  • The analysts believe PEN's incremental pipeline disclosure on the call reflects management's confidence in the upcoming launches and the business's growth potential, despite incremental macro headwinds and ongoing competitive pressure.
  • Price Action: PEN shares are down 1.50% at $171.47 during the market session on the last check Wednesday.

Posted In: BriefsEarningsNewsGuidanceHealth CarePrice TargetAnalyst RatingsMoversTrading IdeasGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.