Why Penumbra Stock Zoomed Nearly 5% Higher Today
Veteran medical device maker (NYSE: PEN) got a shot of good news on Wednesday. An analyst initiated coverage of the company's stock with a rather bullish review, and investors took this to heart. Collectively, they pushed Penumbra's share price up by almost 5% on a day when the S 500 index performed sluggishly with a 0.3% decline.
Just after market close on Tuesday, Stifel prognosticator Mathew Blackman set the tone for Penumbra on Wednesday. He launched his coverage of the specialty healthcare stock with an unambiguous buy recommendation, setting a price target of $238 per share. This anticipates rather juicy upside potential for the shares of nearly 22%.
In his inaugural analysis of Penumbra, Blackman offered several justifications for his bullish take. In terms of products, he singled out the mechanical thrombectomy segment, a company specialty, as a particularly ripe area for growth. He also feels the company is on solid ground fundamentally; he wrote that its "already cash-flow positive model, outsized growth, and margin profile are all significant points-of-differentiation."
Source Fool.com
