Canaccord Genuity Downgrades Penumbra (PEN) to Hold

Canaccord Genuity analyst William Plovanic downgraded Penumbra (NYSE: PEN) from Buy to Hold with a price target of $374.00 (from $359.00).

The analyst comments: "Last Thursday morning, prior to market open, Boston Scientific announced an agreement to acquire Penumbra in a stock-and- cash transaction that values Penumbra at $374 per share, reflecting an enterprise value of approximately $14.5B. We weren’t surprised by the move – there has been speculation for a while that PEN was likely the subject of an acquisition, and BSX was in need of a high-growth asset and needed a functional thrombectomy product to play in the high-growth VTE market. We believe that BSX went after the marquee product in the field – one that has been gaining share and has the clinical evidence to support continued conversion from medical therapy. BSX noted that it intends to run PEN as a standalone business – but outside of the neurovascular business there are plenty of synergies for BSX – including in peripheral thrombectomy (where BSX already has AngioJet and EKOS assets that have been losing share to PEN) and the peripheral embolization businesses that both companies have."

For an analyst ratings summary and ratings history on Penumbra click here. For more ratings news on Penumbra click here.

Shares of Penumbra closed at $350.78 yesterday.

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