Penumbra Inc (NYSE:PEN) surged 8.14% in pre-market trading on Wednesday, February 19, 2025, following the company's impressive fourth-quarter 2024 financial results and bullish analyst outlook.
In its Q4 earnings report, Penumbra reported revenue of $321.3 million, a 12.9% increase year-over-year on an adjusted basis. The company's US thrombectomy business, which includes its proprietary CAVT portfolio, led the growth with sales of $180.6 million, up 27.3% year-over-year.
Penumbra's strong performance was driven by the growing popularity of its CAVT technology, which removes blood clots faster and safer than analog technologies. The company introduced nine new products in 2024, including advancements in its CAVT portfolio, further solidifying its market-leading position.
The company's profitability also improved, with gross margin reaching 67.4%, a 170 basis point increase from the prior year period. Penumbra is on track to achieve a gross margin profile over 70% by the end of 2026, supported by favorable product mix and operational efficiencies.
Following the impressive results, several analysts raised their price targets on Penumbra. UBS increased its price target to $320, while Piper Sandler and Canaccord raised their targets to $330 and $340, respectively, citing the company's strong performance and growth prospects.
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