Piper Jaffray Raises Impinj Price Target After Strong Q2

IMPINJ Inc PI stock gained more than 30 percent Thursday following impressive earnings numbers and bullish comments from one Wall Street analyst.

The Analyst

Piper Jaffray analyst Troy Jensen reiterated an Overweight rating on Impinj and raised the price target from $26 to $31.

The Thesis

Impinj has pulled out of a downward spiral and appears poised to take advantage of an upswing in the RAIN industry, Jensen said in the Thursday note. (See the analyst's track record here.)

Improving demand, a solid pipeline and relatively easy year-over-year comparisons may be the perfect storm for the stock, the analyst said. 

A new airline mandate issued by the International Air Transport Association in June requiring all airlines to use RAIN technology to track luggage should provide a significant growth opportunity, Jensen said. 

Impinj reported a 14-percent quarter-over-quarter increase in revenue to $28.5 million.

“We believe Impinj is seeing broad-based strength across verticals and geographies, and the company is likely entering a stage with better execution and the opportunity for more frequent upward revisions,” Jensen said.

In addition to the price target hike, Piper Jaffray increased its fiscal 2018 and 2018 revenue estimates from $110.6 million and $130.8 million to $120.6 million and $140.0 million, respectively. Jensen also dialed back 2018 and 2019 EPS loss estimates from $1.17 and 91 cents to 80 cents and 53 cents, respectively.

Price Action

Impinj stock is still down 33.1 percent overall in the past year.

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