IMPINJ Inc PI, a maker of radio frequency identification devices and software, reported Monday after the close with better-than-expected first-quarter results and above-consensus second-quarter revenue guidance.
The Analyst
Canaccord Genuity analyst Michael Walkley upgraded IMPINJ from Hold to Buy and increased the price target from $17 to $18.
The Thesis
IMPINJ made progress in Q1, reducing its inventory by hundreds of millions of units versus Canaccord's expectations of a reduction of 500 million to 1 billion units of channel inventory, Walkley said in a Tuesday note.
With the improvement in channel inventory and better-than-anticipated Q2 guidance, Walkley said he expects sequential growth in unit shipments in the next two quarters and a return to year-over-year growth in Q4.
IMPINJ has control of inventory issues and Canaccord forecast improving results going forward, Walkley said.
"We believe the long-term prospects for the RAIN market remain strong and, given our belief channel inventory is improving, we have increased our estimates."
Despite near-term challenges, IMPINJ is focused on developing its end-to-end platform and long-term product development, Walkley said.
"Execution on this road map should enable IMPINJ to offer differentiated products for use across a range of industries supporting longer-term company growth and margins."
The Price Action
IMPINJ shares were skyrocketing 30.19 percent to $17.65 at the time of publication Tuesday.
Related Links:
Morgan Stanley Previews Semi Earnings, Expects Strong Nvidia Results Despite Crypto Concerns
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.