Impinj Inc (NASDAQ: PI) has received a price target increase from Cantor Fitzgerald, now aiming for $260.00, up from the previous target of $205.00.
The firm retained its Overweight rating on the stock following Impinj's third-quarter earnings report, which showcased record numbers.
The company's third-quarter performance exceeded expectations, with all-time high revenue, IC shipments, and adjusted EBITDA.
The strong results were attributed to robust endpoint IC sales across various sectors. In particular, supply chain and logistics showed broad-based strength, retail general merchandise continued its steady growth, and apparel experienced secular growth.
Impinj reported third-quarter earnings per share (EPS) of $0.56, surpassing both Cantor's and FactSet consensus estimates, which were set at $0.48. This beat was in line with the company's own midpoint guidance.
The positive results have been linked to diverse factors, including new opportunities in the grocery sector, where Impinj anticipates a deployment by a new marque customer in the forthcoming quarters.
In other recent news, Impinj has seen its share target raised to $270 from $205 by Evercore ISI, following a strong recent financial performance that exceeded expectations. This revision comes despite the company's first-quarter outlook for 2025 being slightly below market expectations, indicating a potential slowdown in revenue growth. In recent developments, Evercore ISI expects Impinj to announce additional significant customer engagements throughout 2025, reinforcing the company's growth trajectory.
Impinj's Q3 2024 earnings call revealed mixed results, with a revenue of $95.2 million, marking a 46% increase year-over-year, despite a 7% sequential downturn. The company's adjusted EBITDA stood at $17.3 million, with an 18.2% margin. Looking ahead, Impinj projects Q4 revenue to be between $91 million and $94 million, reflecting a 31% year-over-year increase, with adjusted EBITDA projected between $13.6 million and $15.1 million.
Evercore ISI maintains a positive outlook on Impinj's stock despite some short-term challenges, citing an anticipated industry adoption inflection point, with major customers like Walmart (NYSE:WMT) integrating tags into their products. This shift is expected to facilitate easier adoption for other large general merchandisers.
InvestingPro Insights
Impinj's recent performance and future prospects are further illuminated by data from InvestingPro. The company's stock has shown remarkable strength, with a 319.18% price total return over the past year and an 83.99% return in the last six months. This aligns with the positive sentiment expressed in Cantor Fitzgerald's upgraded price target.
InvestingPro Tips highlight that 7 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Impinj's future performance. This optimism is consistent with the company's record-breaking third-quarter results and the anticipated growth in sectors like grocery and mobile devices.
However, investors should note that Impinj is trading at a high earnings multiple, with a P/E ratio of 490.51. This valuation suggests the market has priced in significant growth expectations, which aligns with the company's recent performance and future outlook.
For those seeking a deeper understanding of Impinj's potential, InvestingPro offers 14 additional tips, providing a comprehensive view of the company's financial health and market position.
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