When I last wrote about Penumbra (NYSE:PEN) in August of 2022 I was bullish on the company based on the prospects for meaningful upcoming product launches and a material rerating for the shares. This has largely panned out since then, with the company recently launching the Lightning Flash in the U.S. and seeing valuation multiples expand again on more bullishness around the company’s ability to hit 20% revenue growth in 2023.
The shares are up more than 35% since that last article, handily beating the Dow Jones Select Medical Equipment Index over that time, as well as rival Inari (NARI). Valuation is never completely straightforward with growth med-tech like Penumbra, but at this point I see the valuation as much less of a bargain, but I don’t discount the possibility of even further positive rerating if Penumbra can log some beat-and-raise quarters on the back of Lightning Flash and other new products heading to the market this year.
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