BTIG analyst Ryan Zimmerman downgraded Penumbra to Neutral from Buy with a suspended price target after the announced the voluntary recall of its JET 7 Reperfusion Catheter with Xtra Flex technology, citing the catheter's susceptibility to distal tip damage.

Issues with the JET 7 Xtra Flex were well-publicized, but on the update call last night, management noted that another patient death in October shifted the conversation with the FDA, resulting in the recall, Zimmerman tells investors in a research note. It is difficult to reconcile this timeline and not think that management "will have to rebuild investors' trust," says the analyst.

Penumbra in premarket trading is down 9%, or $17.72, to $171.10.