Citing 'Lightning Fast Growth,' Needham Upgrades This Vascular Device Company

  • Needham upgraded Penumbra Inc PEN to Buy from Hold, with a price target of $244.
  • The analyst notes that management indicated PEN is seeing stronger growth in 3Q22 due to an improvement in hospital staffing, share gains, or a combination of these. 
  • Penumbra recently announced European approval for RED Reperfusion Catheters, which are part of the company's Penumbra System, a fully integrated mechanical aspiration thrombectomy system designed to restore blood flow in acute ischemic stroke patients.
  • Related: With Sustained Double-Digit Growth Profile, RBC Starts Coverage On This MedTech Stock.
  • The analyst believes the international RED catheter launches should help to drive faster stroke growth as soon as 4Q22. 
  • Needham also writes that the upcoming intelligent aspiration launches should drive faster growth starting in 2023. 
  • In its Neuro business, PEN plans to launch Thunderbolt in 2H23 after it completes its THUNDER IDE trial, which is now underway. 
  • In its Vascular business, the company plans to launch its Lightning Flash and Lightning Bolt products in 2023, which are new versions of its intelligent aspiration system. 
  • The analyst expects the Lightning systems to drive growth through increased thrombectomy market penetration and market share gains.
  • Price Action: PEN shares are up 2.62% at $202.67 on the last check Friday.
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