Penumbra, Inc. (PEN): A Bull Case Theory

We came across a bullish thesis on Penumbra, Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on PENz. Penumbra, Inc.’s share was trading at $253.02 as of August 15^th. PENz’s trailing and forward P/E were 66.94 and 71.43, respectively according to Yahoo Finance.

Penumbra, Inc. is emerging as a key growth story in the medical device space, driven by its differentiated computer-assisted vacuum thrombectomy (CAVT) technology. The company manufactures mechanical thrombectomy devices designed to remove clots, and its innovation lies in the use of algorithms that modulate aspiration power when a clot is detected and control a separate valve that injects saline to reduce friction between the clot and the catheter. This combination allows for maximum clot removal while reducing the risk of blood loss, giving Penumbra a meaningful competitive advantage.

The thrombectomy market in the U.S. represents a large opportunity, with more than 1 million procedures annually across stroke and peripheral vascular segments and a total addressable market estimated at over $8 billion. Penumbra currently has only high single-digit penetration into this opportunity as of 2024, leaving significant headroom for expansion. The company is already gaining traction in the venous setting through its Flash product, and future growth could be catalyzed by the development of Thunderbolt, a device aimed at stroke treatment.

A major potential inflection point is the Storm-PE trial, which completed enrollment this quarter and is evaluating CAVT plus anticoagulation against anticoagulation alone for intermediate-high risk pulmonary embolism patients. If the trial demonstrates superiority, Penumbra could drive a paradigm shift in pulmonary embolism treatment and significantly expand its market. With early momentum, underpenetrated markets, and a clinical trial that could transform the standard of care, Penumbra represents a compelling opportunity for long-term growth and value creation.

Previously, we covered a bullish thesis on Penumbra, Inc. (PEN) by northeasternsvf in November 2024, which highlighted CAVT technology, market expansion, and international approvals. The stock has appreciated about 7% since our coverage, as product strength offsets earnings challenges. The thesis still stands given strong growth drivers. Stock Analysis Compilation shares an identical view but emphasizes the Storm-PE trial as a key catalyst.

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Disclosure: None.