UPDATE: BTIG Upgrades Penumbra (PEN) to Buy

BTIG analyst Ryan Zimmerman upgraded Penumbra (NYSE: PEN) from Neutral to Buy, PT $291.00.

The analyst comments "As a follow-up to our Sep. 2020 survey (here), we conducted a second survey of 26 US-based stroke MDs over May 2021 to get clarity on PEN's position in the US Neurovascular market. In conjunction with our survey, we are upgrading shares of PEN to Buy with a $291 PT. Our 2nd survey suggests MDs have stuck with PEN's Stroke portfolio despite what may have been share losses early in FY21 due to competitive trialing. MDs surveyed expect to maintain PEN product use from here, despite lower share levels relative to our last survey. We think that, if PEN's US share holds (even if at this lower level), upside vs. Street could come from OUS (i.e., China) or the launch of new 'paradigm' shifts in stroke that mgmt. has alluded to, resulting in regaining share (although the 'paradigm' shift is harder to handicap at this point). All told, we're positively biased and see the pullback in shares, distance from J7XF dynamics, and more favorable survey results as an opportunity to step in. We think most investors are comfortable with Peripheral Vascular as the segment is growing well (thrombectomy grew ~80% Y/Y in 1Q21),market penetration remainslow, and new indications provide upside. The harder part, in our view, was getting comfort with Neurovascular given competition within stroke, PEN's growth composition (Stroke vs. Access), and any lingering impact from the J7XF recall. Following the recall, we moved to the sidelines on concern that the recall would hamper FY21 guidance and use of complementary PEN products but given PEN's results over the past 6 months and survey results,those concerns proved to be less impactful than originally assumed."

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 $256.66 yesterday.

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