Citi Maintains Hold Rating on Penumbra (PEN) with $320 Price Target

Citi analyst Joanne Wuensch maintains a Hold rating on Penumbra (PEN) with a price target of $320.00. Wuensch covers the Healthcare sector and has a 7.2% average return and 62.42% success rate on recommended stocks. The analyst consensus on Penumbra is a Strong Buy with an average price target of $319.55, based on the company's latest earnings release.

Penumbra Inc. (PEN) has been the subject of attention in the healthcare sector, with its stock experiencing a notable rally in the past year. As of May 24, 2025, the company's shares have surged 35.9%, outperforming the industry's 13.3% decline and the S&P 500's 11.6% gain [1]. Citi analyst Joanne Wuensch maintains a Hold rating on Penumbra, with a price target of $320.00. This rating is in contrast to the broader analyst consensus, which is a Strong Buy with an average price target of $319.55 [1].

The rally in Penumbra's stock can be attributed to several factors. The company's consistent revenue growth momentum is driven by the success of its Lightning Bolt and Flash lines in both the U.S. and international markets. The Lightning Bolt 7 and Flash 2.0 devices have seen significant adoption, with the Lightning Bolt 7 cases accelerating in the past few months [1]. The international thrombectomy revenues grew 18.2% year over year in the first quarter of 2025, with strong momentum in regions outside China, particularly in EMEA [1].

Penumbra's solid financial health is also a positive indicator for the stock. The company exited the 2025 first quarter with $379 million in cash and cash equivalents, up from $340 million at the end of 2024, and total debt stood at $21 million, well below its cash reserves [1]. The Zacks Consensus Estimate for Penumbra's 2025 and 2026 earnings per share (EPS) is expected to increase 69.8% and 35.3%, respectively, to $3.77 and $5.11 [1].

However, Penumbra is not without its challenges. The company's business is currently impacted by worldwide geopolitical complications, leading to cost escalation, raw material supply constraints, and increased employee turnover rates in certain jurisdictions [1]. These challenges could potentially impact the company's growth trajectory.

Despite these challenges, Penumbra remains a strong player in the healthcare sector. The company's innovative technologies for challenging medical conditions and its solid track record of organic product development and commercial expansion make it a promising investment. Analysts' differing opinions on the stock's valuation highlight the importance of conducting thorough research before making investment decisions.

References:
[1] https://www.nasdaq.com/articles/penumbra-rallies-359-year-whats-driving-stock