TICKER ALERT: PI
Impinj initiation details -- Buy at Dougherty & Company ; tgt $62 (32.10 +1.16)
Dougherty & Company initiates PI with a Buy and price target of $62. Impinj has an enviable combination of opportunity, positioning and leadership. Co helped invent a standards-based technology (RAIN RFID) that last year shipped on ~10B items (including ~6B using Impinj ICs) and has barely scratched the surface of its total opportunity to connect trillions of everyday items. Importantly, leaders in multiple industries outside of Impinj's historical reliance on the apparel industry have recently begun to send signals that they plan to use RAIN RFID in their organization, including Amazon, Kaiser Permanente, FedEx, the DoD and 7-Eleven. Thus, firm sees potential for rising estimates and a rising multiple as the adoption of RAIN RFID broadens and is enabled by multiple Impinj technologies (endpoint and reader ICs, fixed reader infrastructure, and software). Firm's Buy, $62 tgt is based on 8x EV/S their FY18 rev est of $162MM -- a multiple they have witnessed a select few high-growth peers achieve (AMBA, CAVM, ARMH, NVDA, MBLY). They believe Impinj belongs in this conversation.
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