It was a great day for radio-frequency identification stock Impinj (NASDAQ:PI), which saw shares skyrocket up nearly 22% in Thursday afternoon’s trading session. The biggest reason was an excellent third-quarter earnings report as well as a positive outlook going forward.
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Impinj’s 2023 has not been a good one overall. Shares were down about 55% year-over-year, so the sudden surge is a welcome bit of good news, fueled itself by other bits of good news. In perhaps the biggest piece of news, Impinj took its original fourth-quarter projections of -$0.04 per share and turned it instead into a gain of $0.01. The gain is trivial, but percentage-wise, going from negative to positive is a whole world of difference. Better yet, analysts were expecting a loss of -$0.05.
Moreover, there’s also gain on the horizon for revenue as well. Revenue got bumped up from its original $65.5 million to $68.5 million. Given that analyst consensus looked for $66.19 million, that’s also excellent news. Impinj turned those numbers around, reports note, thanks largely to “retail demand improvement,” which is giving Impinj fresh hope.
There are limits, of course; the obvious macroeconomic pressures are serving as a stressor on returns, but there is likely still long-term opportunity, especially if inflation improves and the downturn is short.
What is the Forecast for Impinj?
Turning to Wall Street, analysts have a Strong Buy consensus rating on PI stock based on seven Buys and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average PI price target of $85 per share implies 40.1% upside potential.
