On Thursday, Roth/MKM maintained a Buy rating on Impinj Inc (NASDAQ:PI) and increased the share price target to $145 from the previous $125. This adjustment follows Impinj's first-quarter 2024 earnings report and second-quarter guidance, which surpassed expectations.
Impinj's financial performance for the first quarter of 2024 included one-time catch-up payments from NXP (NASDAQ:NXPI) amounting to $45 million. The company also anticipates recognizing ongoing payments from NXP, projected to be $15 million in the second quarter of 2024. Excluding these factors, Impinj's results aligned with preliminary estimates.
The company's continued success is partly attributed to the growing adoption of Radio-Frequency Identification (RFID) technology. Impinj is on schedule with significant customer roll-outs for the year 2024, including those with Walmart (NYSE:WMT) and UPS. These deployments are expected to contribute to the company's growth and market presence.
Roth/MKM has revised its financial forecasts for Impinj upward, citing the recovery of endpoint Integrated Circuit (IC) sales and overall market expansion as contributing factors. Despite the positive adjustment, the firm anticipates that the initial surge in the company's aftermarket stock price may level off as investors fully assess the contributions to the reported financial upside.
InvestingPro Insights
Impinj Inc (NASDAQ:PI) has been the subject of investor attention following its first-quarter earnings beat and optimistic guidance for the second quarter of 2024. According to InvestingPro data, the company has a market capitalization of $3.34 billion and has experienced a significant price uptick with a 143.38% return over the last six months. This aligns with the company's recent achievements and the positive outlook from Roth/MKM.
While the stock exhibits a high Price / Book multiple of 38.92, reflecting a premium valuation, it's important to note that Impinj operates with a moderate level of debt and its liquid assets exceed short-term obligations. These factors suggest a stable financial position, which may reassure investors considering the stock's volatility. Additionally, the company's revenue has grown by 2.72% over the last twelve months as of Q1 2024, despite a quarterly decline of 10.56% in the same period.
InvestingPro Tips indicate that Impinj is not profitable over the last twelve months and trades at a high revenue valuation multiple. However, analysts predict the company will be profitable this year, which could be a pivotal point for potential investors. For those looking to dive deeper into Impinj's financials and forecasts, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/PI. To enrich your investing strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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