Cantor Fitzgerald Reiterates Overweight Rating on Impinj Inc (PI), $133 price target
The analyst commented, "Impinj posted first-quarter results beating Cantor estimates, FactSet consensus, and company guidance as steady demand and higher-than-expected endpoint IC volumes drove the revenue and earnings surprises. Endpoint IC revenues beat our estimate, but System revenue missed our expectations. PI posted 1Q25 EPS of $0.21, ahead of Cantor and FactSet consensus estimates of $0.08 (management mid-point guidance = $0.09). While higher 4Q24 inventory levels with Impinj's partners were expected to spill into 1Q25, channel partners are maintaining inventory for geographical optionality in the face of tariff uncertainty. Even though the inventory level might raise concern, PI's enterprise customers remain engaged and are under-shipping consumer demand as they shift U.S.-bound product shipments from China to other geographies. As shipments converge with demand, Impinj expects channel inventory normalization. Second-quarter company guidance exceeded Cantor standing estimates and FactSet consensus largely on healthy enterprise demand and strong operational execution, resulting in higher-than-expected gross and adjusted EBITDA margins. Despite macro uncertainty, Impinj's secular growth opportunities in retail, supply chain and logistics, and food and general merchandise remain intact. We reiterate our Overweight rating on PI shares and our 12- month $133 price target." |
