Needham has increased the price target for Impinj Inc (NASDAQ: PI) to $245 from $195 while maintaining a Buy rating.
The firm highlighted Impinj's robust third-quarter performance and positive guidance for the future.
Impinj's third-quarter revenues saw a 46% increase, surpassing the high end of their guidance, while their adjusted EBITDA was 13% above the high-end forecast.
The company's strength was noted across the board, with a significant 67% year-over-year growth in endpoint ICs and an improvement in quarter-over-quarter Systems growth.
Impinj's fourth-quarter revenue guidance was slightly above the consensus, and their earnings guidance also exceeded expectations. Following these results, Needham has revised its estimates for the fourth quarter of 2024 and the full year 2025.
The analyst from Needham acknowledged that expectations were high leading into Impinj's third-quarter report, which could lead to some profit-taking after the shares' recent strong performance.
However, the firm emphasized that Impinj is poised for continued growth with multiple drivers now including the food sector, in addition to logistics, general merchandise, and the core retail apparel market which remains under-penetrated.
In other recent news, Impinj has garnered attention due to its robust third-quarter performance, which exceeded expectations with record revenue, IC shipments, and adjusted EBITDA. This strong performance was attributed to robust endpoint IC sales across various sectors, with notable strength in supply chain and logistics, retail general merchandise, and apparel. The company reported third-quarter earnings per share (EPS) of $0.56, surpassing both Cantor's and FactSet consensus estimates, set at $0.48.
Impinj's Q3 revenue reached $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.
In response to these developments, Cantor Fitzgerald has increased its price target for Impinj from $205.00 to $260.00, retaining its Overweight rating on the stock.
Similarly, Evercore ISI has raised its share target for Impinj from $205 to $270, maintaining an Outperform rating despite acknowledging potential short-term challenges.
Both firms anticipate the announcement of significant customer engagements throughout 2025, reinforcing Impinj's growth trajectory.
InvestingPro Insights
Adding to Needham's positive outlook on Impinj Inc (NASDAQ:PI), recent data from InvestingPro provides further context to the company's financial performance and market position. Despite the impressive 46% revenue increase noted in the third quarter, InvestingPro data shows that Impinj's revenue for the last twelve months as of Q2 2024 stood at $314.98 million, with a quarterly revenue growth of 19.2% in Q2 2024. This suggests a continuation of the strong growth trajectory highlighted in the article.
InvestingPro Tips indicate that Impinj's stock price movements are quite volatile, which aligns with the analyst's comment about potential profit-taking following the recent strong performance. Additionally, the company is trading at a high earnings multiple, reflecting investor optimism about future growth prospects. This is further supported by the fact that 7 analysts have revised their earnings upwards for the upcoming period, suggesting confidence in Impinj's near-term performance.
It's worth noting that Impinj has shown a strong return over the last three months, with InvestingPro data revealing a 45.83% price total return over this period. This performance underscores the market's positive reception of Impinj's recent results and future outlook.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Impinj, providing a deeper understanding of the company's financial health and market position.
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