Analyst’s Bright Outlook
Needham analyst James Ricchiuti raised the price target of Impinj Inc (PI) to $115 from $85 while maintaining a Buy rating. The bullish stance reflects PI’s expectation of better-than-expected fourth-quarter 2023 results.
Strong Forecast Drives Optimism
Impinj Inc projected revenue over $70 million, vs. prior guidance of $65.5 million to $68.5 million and adjusted EBITDA of more than $2.5 million, vs. previous guidance of ($0.9) million to $0.7 million in the quarter. The upside was led by a stronger-than-expected increase in endpoint revenue and sequential growth in systems revenue.
Capitalizing on Opportunities
Impinj Inc believes it is in the early innings of capitalizing on opportunities it has developed with lighthouse enterprise customers and over time expects to leverage these solutions in repeatable applications with other partners.
Positive Industry Outlook
During NGC 2024, management comments suggested that the retail apparel inventory overhang was nearing an end, boding well for Impinj Inc’s future performance.
Growth Trajectory
The analyst expects Impinj Inc to return to a strong growth trajectory in the second half of FY24, continuing into FY25, led by continued momentum from the lighthouse enterprise customers and faster progress that will bring down the endpoint IC channel inventories across the broader retail apparel market.
Rising Business Prospects
The analyst anticipates Impinj Inc’s RAIN RFID business to witness growth from expanding retail use cases for self-checkout, loss detection, and general merchandise retailing, leading to increased revenue estimates for the company.
Market Response
PI shares are trading higher by 3.49% at $94.25 on the last check Thursday, demonstrating investor enthusiasm for the company’s growth prospects.
