- Penumbra Inc (NYSE:PEN) reported Q1 sales that beat Street expectations, driven by Vascular upside, and reiterated its 2022 revenue guidance.
- Wells Fargo lowered the price target to $265 from 321, which is equivalent to a 52.2% upside.
- At 9.5x (down from 12x as peer group valuation has been compressed) with a 2023 sales estimate of $1.02 billion, PEN shares would trade essentially in line with its peers, analysts write.
- Q1 revenue of $203.9 million (+21.8% ex-FX) beat the consensus of $195.04 million and Wells Fargo's estimate of $195.2 million, including $5 million from an earlier-than-expected start of vascular thrombectomy sales in China, notes Wells Fargo.
- For 2022, the company maintained its revenue guidance of $860 million -$875 million.
- With multiple new Neuro and Vascular launches expected over the next 18 months, PEN expects its revenue growth to accelerate in 2023, which puts the company well on track to exceed $1 billion in total revenue next year.
- The analysts believe PEN's incremental pipeline disclosure on the call reflects management's confidence in the upcoming launches and the business's growth potential, despite incremental macro headwinds and ongoing competitive pressure.
- Price Action: PEN shares are down 1.50% at $171.47 during the market session on the last check Wednesday.
