Why Penumbra (PEN) Is Up 5.3% After Raising 2025 Guidance and STORM-PE Trial Results

• Penumbra, Inc. recently reported third quarter results with sales reaching US$354.69 million and net income rising to US$45.85 million, alongside raising its 2025 revenue guidance and publishing strong clinical trial data for its vacuum thrombectomy technology.
• Importantly, new evidence from the STORM-PE trial underscores the clinical potential of Penumbra's CAVT procedure, showing superior patient outcomes in pulmonary embolism treatment compared to standard care.
• We'll examine how Penumbra's updated growth guidance and positive clinical data influence its investment case and long-term prospects.

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Penumbra Investment Narrative Recap

To be a Penumbra shareholder, you need to believe that the company's innovations in minimally invasive vascular care can drive strong, defensible growth, especially through clinical evidence and product adoption. The impressive new STORM-PE trial results and the company's revised 2025 growth guidance both reinforce Penumbra's biggest short-term catalyst: expanded use of its thrombectomy technology for pulmonary embolism. However, product concentration risk remains, as the business still relies heavily on a few franchises; this risk is not materially reduced by these announcements.

Among the latest updates, Penumbra's raised 2025 revenue guidance stands out as highly relevant. Management is now projecting US$1.375 to US$1.38 billion in revenue for 2025, signaling confidence and reflecting the anticipated impact of the positive clinical trial data on commercial adoption of new interventions. This aligns directly with the growth catalyst driven by new clinical evidence but also highlights sensitivity to execution and adoption trends.

On the other hand, investors should keep a close watch on...

Read the full narrative on Penumbra (it's free!)

Penumbra's forecast points to $1.9 billion in revenue and $274.7 million in earnings by 2028. This outlook is based on an expected 13.6% annual revenue growth and a $127 million increase in earnings from the current $147.7 million.

Uncover how Penumbra's forecasts yield a $306.74 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Four community opinions on fair value range from US$107.99 to US$306.74. While many see growth potential in clinical trial success, risks from product concentration remain a core concern, review multiple viewpoints to form your own outlook.

Explore 4 other fair value estimates on Penumbra - why the stock might be worth less than half the current price!

Build Your Own Penumbra Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Penumbra research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Penumbra research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Penumbra's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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