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Investing.com - Needham has reiterated its Hold rating on Penumbra (NYSE:PEN), maintaining its cautious stance on the medical device company ahead of upcoming clinical trial results. The $11 billion medical device maker has seen its stock surge 38% over the past year, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The medical device maker’s STORM-PE randomized controlled trial, which compares thrombectomy plus anticoagulation to anticoagulation alone in patients with acute intermediate-high risk pulmonary embolism (PE), will present initial results at the 2025 TCT meeting on October 26, 2025.
Needham expects the trial will likely demonstrate superiority for the thrombectomy plus anticoagulation approach, given the study’s primary endpoint measures change in RV/LV ratio at 48 hours—a metric that typically takes days or longer to improve with anticoagulants alone.
While positive results could eventually increase thrombectomy referrals to interventionalists and expand market penetration, Needham believes these benefits will take time to materialize and may be overshadowed by competitor Stryker’s (NYSE:SYK) PEERLESS II study expected in late 2026.
Needham cited Penumbra’s current valuation at 55 times its 2026 estimated earnings per share as a key factor in maintaining its Hold recommendation on the stock. InvestingPro data reveals the company’s current P/E ratio stands at 73.3x, with 14 analysts recently revising their earnings expectations downward. Discover more insights and 12 additional ProTips for PEN through InvestingPro’s comprehensive research platform.
In other recent news, Penumbra Inc . reported strong financial results for the second quarter of 2025, surpassing both earnings per share and revenue expectations. The company achieved an EPS of $0.86, beating the forecasted $0.83, and reported revenue of $339.5 million, exceeding the anticipated $327.77 million. UBS responded to these results by raising its price target for Penumbra to $335, citing solid growth and maintaining a Buy rating. Meanwhile, RBC Capital adjusted its price target slightly downward to $325, while still maintaining an Outperform rating, due to margin considerations.
In addition, Evercore ISI initiated coverage on Penumbra with an Outperform rating, highlighting the potential of the STORM PE product and forecasting a $300 price target. The firm noted the potential for Penumbra to accelerate its topline growth as challenges in China diminish and new products are launched. Furthermore, Penumbra announced the promotion of Shruthi Narayan to President, effective September 1, 2025. Narayan brings extensive experience from her previous roles within the company and her tenure at Medtronic, contributing to the company’s ongoing leadership and strategic direction.
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