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On Thursday, BTIG analyst Ryan Zimmerman updated the firm’s outlook on Penumbra shares (NYSE:PEN), increasing the price target to $320 from the previous $305, while reaffirming a Buy rating on the stock. The medical device company, currently valued at $10.8 billion, has shown strong momentum with a 35% price return over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, though analyst targets range from $260 to $340. This adjustment follows Penumbra’s first-quarter earnings for 2025, which surpassed expectations.
Penumbra reported a revenue of $324.1 million for the first quarter, marking a year-over-year growth of 16.3% and a 16.9% increase excluding foreign exchange impacts. The company’s adjusted earnings per share (EPS) came in at $0.83, which was notably higher than both BTIG’s and consensus estimates of $0.63 and $0.67, respectively. The strong performance was attributed to better-than-expected gross margins (GMs) and operating margins (OMs), which were 40 basis points and 270 basis points ahead of consensus estimates. InvestingPro data shows the company maintains a healthy gross profit margin of 66% and has received a "GREAT" financial health score, with particularly strong ratings in cash flow and profitability metrics.
The company saw significant revenue growth in its Thrombectomy segment, which exceeded expectations by approximately 6.1%, while the Embolization & Access segment also performed favorably, beating Street estimates by 5.7%. Penumbra’s full-year 2025 guidance was reaffirmed at around $1.35 billion, indicating a 13% year-over-year growth at the midpoint. This includes expectations for gross margins to grow beyond 67% and operating margins to range between 13% and 14%.
Despite removing $5 million from its China-specific guidance due to macroeconomic dynamics, BTIG anticipates Penumbra to track towards the higher end of its guidance range, with a new model projecting $1.355 billion for the full year 2025. The firm highlighted the ease of upcoming comparisons within the Thrombectomy segment as the year progresses.
BTIG also noted Penumbra’s strong position in the market, given its mix of non-elective procedures and the fact that 100% of its manufacturing is based in the United States, with 75% of raw materials also sourced domestically. These factors, combined with conservative guidance, expanding product adoption, and improving margins, lead BTIG to view Penumbra’s setup as one of the most favorable in the MedTech industry.
In other recent news, Penumbra Inc . reported impressive financial results for the first quarter of 2025, exceeding analyst expectations. The company achieved earnings per share of $0.83, surpassing the forecasted $0.67, and recorded revenue of $324.1 million, which was higher than the anticipated $315.62 million. This performance reflects a year-over-year revenue growth of 16.3%. The company also highlighted its strong presence in the U.S. thrombectomy market, where revenue increased by 25% year-over-year, driven by significant growth in the venous thromboembolism segment.
Additionally, Penumbra’s gross margin improved to 66.6%, up 160 basis points from the previous year. The company maintained its full-year revenue growth guidance of 12-14%, with U.S. thrombectomy expected to grow by 20-21%. Penumbra also adjusted its revenue forecast to exclude $5 million from China due to geopolitical uncertainties. Furthermore, the company continues to focus on innovation, with recent FDA clearance for the Ruby XL diagnostic catheter, which is expected to launch by mid-2025.
In terms of market analysis, Penumbra was not subject to any recent analyst upgrades or downgrades. However, the company has been noted for its strategic investments in its commercial team and ongoing supply chain optimization efforts. These developments underscore Penumbra’s commitment to maintaining its market leadership and delivering strong financial results.
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