Penumbra price target raised to $390 from $325 at Citi

Citi raised the firm’s price target on Penumbra to $390 from $325 and keeps a Buy rating on the shares. The upcoming Q2 may be the most “normal” quarter for U.S. medical technology since the advent of the pandemic, the analyst tells investors in a research note. While the macro environment remains challenging with inflation still atypically high and currency headwinds, physician conversations and the Strata April/May data indicate strong Q2 delivery, although not at Q1 growth rates, says the firm. Citi says underlying fundamentals are “quite strong” as patients are returning, pent-up demand is beginning to be met, staffing is stable to improving, and hospitals are doing patient outreach. In sum, Citi expects a good Q2, but it also expect results to be “not too hot, not too cold,” in other words, a “Goldilocks” quarter.