Hot IPO Impinj Nabs Price-Target Hike On Internet Of Things Outlook – Investor's Business Daily


September 26, 2016 Facebook Twitter LinkedIn Google+ Uncategorized


Seattle-based Impinj (PI), a provider of inventory-tracking technology using radio frequency identification (RFID) tags, has been a hot stock since its initial public offering this summer.

Impinj went public on July 21 at 14 and climbed as high as 37.86 on Sept. 14. Shares, though, were down more than 1%, below 34, in morning trading on the stock market today, though Pacific Crest Securities analyst Brad Erickson late Sunday reiterated his overweight rating on Impinj stock and raised his price target to 36 from 29.


IBD’S TAKE: The stock market’s newest companies are where you find some of the biggest winning stocks. Check out IBD’s IPO Leaders stock list for a proprietary screen of recent IPOs with strong fundamental and technical traits.


“After hosting PI’s management team for investor meetings last week, we came away incrementally more confident in its competitive moat, near-term inventory levels and the likely critical need for its software,” Erickson said in his research report.

Impinj is a player in the Internet of Things (IoT). It sells systems that use RAIN RFID to track items for retail, pharmaceutical, health care, food and beverage, manufacturing and other industries. RAIN RFID is a wireless technology standard for connecting items to the internet, enabling businesses to identify, locate and check the status of each item. RAIN is an acronym derived from radio frequency identification.

The biggest concerns related to Impinj are commoditization and product differentiation, Erickson said.

“We came away more confident that attributes like read range, patented chip design and antenna tuning have led to its 65% market share,” he said.

Larger companies such as Texas Instruments (TXN) and Microchip (MCHP)-owned Atmel have tried their hand at UHF RFID and failed, so Impinj’s technology likely solves more challenging problems than many investors realize, he said.

RELATED:

Impinj Soars To New High As First Earnings Since IPO Connects

Comments