On Thursday, Evercore ISI increased its price target for Impinj Inc (NASDAQ:PI) shares to $205.00, up from the previous target of $172.00, while keeping an Outperform rating on the stock.
The firm’s decision follows Impinj’s announcement of a second quarter earnings per share (EPS) beat by 12% and a third quarter EPS forecast increase of 21%. This performance comes despite earlier concerns this week when a key in-lay partner adjusted its Intelligent Label forecast for 2024 downward.
The company’s strong results were attributed to sustained demand in the apparel and footwear sectors, early indications of retail repurchasing, consistent growth in general merchandise, and positive developments in specialty applications.
Management indicated that revenue from Systems should see quarter-over-quarter growth in the third quarter after experiencing a 38% decline from its peak over the past four quarters.
Impinj’s progress with major programs at companies like Walmart (NYSE:), UPS, and Inditex (BME:), as well as unexpected demand from the food industry, contributed to the positive outlook.
In light of these developments, Evercore ISI has also raised its 2025 EPS estimate for Impinj to $3.14, up from the previous estimate of $2.67. The revised estimates and price target reflect the company’s resilience and potential for continued growth in its market segment.
In other recent news, Impinj Inc. announced strong financial results for the second quarter, with revenue exceeding $100 million and adjusted EBITDA surpassing $25 million.
The company’s robust performance was driven by substantial growth in various sectors, including apparel, footwear, retail, general merchandise, and specialty applications. Impinj also projects a 42% year-over-year increase in product revenue for the third quarter.
In addition to its financial achievements, Impinj announced key leadership changes, with Gahan Richardson becoming the Executive Vice President for products and platform and Alberto Pesavento assuming the role of CTO. The company also highlighted its strong relationship with a key North American supply chain and logistics enterprise.
Despite a 14% sequential decrease in Q2 systems revenue, Impinj anticipates increased revenue from systems in Q3. The company is also ramping up wafer orders to meet growing product demand. These recent developments underscore Impinj’s confidence in its market position and long-term margin targets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
