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Investing.com - RBC Capital lowered its price target on Penumbra (NYSE:PEN) to $325 from $330 while maintaining an Outperform rating following the company’s second-quarter earnings report. Currently trading at $252.28, the stock maintains a strong "Buy" consensus among analysts, with targets ranging from $260 to $340. According to InvestingPro analysis, the stock appears overvalued at current levels.
The medical device company beat expectations in the second quarter and raised its 2025 revenue guidance, citing strong peripheral vascular growth and above-market performance in its stroke business. With a robust gross profit margin of 66.37% and revenue growth of 13.17% over the last twelve months, Penumbra demonstrates solid operational execution.
Penumbra demonstrated robust business momentum with solid teens underlying growth of 12.7% in the second quarter, supported by 42% year-over-year growth in U.S. VTE, where the company continues to gain market share.
The company increased its 2025 revenue guidance by 100 basis points to 13-15%, which RBC Capital noted implies some conservativeness for the second half despite the weaker stroke market environment.
RBC Capital highlighted upcoming catalysts including STORM-PE trial results and Thunderbolt approval and launch in the coming months, which could support growth into 2026, while noting that margin progress continues to be strong.
In other recent news, Penumbra Inc . reported its second-quarter 2025 earnings, surpassing analyst expectations. The company posted an earnings per share (EPS) of $0.86, which was higher than the anticipated $0.83. Additionally, Penumbra achieved a revenue of $339.5 million, exceeding the expected $327.77 million. This represents a 13.4% year-over-year growth, highlighting the company’s solid performance. In light of these results, UBS raised its price target for Penumbra to $335 from $330, while maintaining a Buy rating on the stock. These developments reflect Penumbra’s strong market position and financial health. Investors may note that the stock price target adjustment by UBS follows the company’s positive earnings and revenue outcomes.
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