Mechanical thrombectomy continues to take share in both neurovascular and peripheral vascular procedures, and Penumbra (PEN) is continuing to leverage that strong physician interest to build this franchise. The recall of the JET 7 Xtra Flex catheter was definitely a setback for the company, but given the specifics of the product failure, I do not believe it will damage the franchise on a long-term basis.
I'm far more concerned today with Penumbra's valuation than any potential long-term overhang from the recall or competition from the likes of Medtronic (MDT) and Stryker (SYK). Growth med-tech, particularly growth med-tech with fast-growing underlying markets, can often sport double-digit multiples to forward revenue, but at around 12.5x my 2022 revenue estimate (which is a bit above the highest published sell-side estimate), it's hard to say that Penumbra isn't getting appreciated for its well above-average potential.
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