Impinj shares downgraded to neutral by Goldman Sachs

Impinj shares downgraded to neutral by Goldman Sachs

On Monday, Goldman Sachs adjusted its stance on Impinj Inc ( NASDAQ :PI), a leading provider of RAIN RFID solutions, changing its stock rating from Buy to Neutral. The firm maintains a price target of $156.00 on the company's shares.

The revision comes despite Goldman Sachs' continued positive outlook on the RAIN RFID market and Impinj's competitive position within it. The downgrade is attributed to the stock's significant outperformance relative to the firm's coverage universe and the limited downside potential to the firm's 12-month price target, which remains unchanged.

Impinj's stock has seen a remarkable rise since its addition to Goldman Sachs' Buy list on November 30, 2020, with an increase of over 315%, compared to a 61% gain for the median stock in the firm's coverage universe and a 46% rise for the S&P 500 index. In year-to-date terms, Impinj's shares have surged by 93%, outpacing the median stock in the coverage universe, which has grown by 12%, and the S&P 500's 11% increase.

Goldman Sachs indicates that it is looking for signs of an acceleration in RAIN RFID adoption beyond the traditional Retail Apparel market, such as in the Food/Drink sector or with the European Digital Product Passport, before turning positive on the stock again. The firm suggests that a more favorable entry point could alter its position in the future.

InvestingPro Insights

As Goldman Sachs revises its rating on Impinj Inc, real-time data from InvestingPro provides a deeper look into the company's financial health and market performance. With a market capitalization of $4.81 billion, Impinj is trading near its 52-week high, at 98.93% of that peak, reflecting the significant run-up in its share price. The company's recent performance shows a strong return, with a one-month price total return of 49.07% and a three-month return of 71.38%.

Despite the impressive share price appreciation, Impinj operates with a negative P/E ratio of -821.86, indicating that it has not been profitable over the last twelve months. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at -122.56, suggesting that investors are expecting future earnings growth to justify the current valuation. This expectation is supported by one of the InvestingPro Tips, which indicates that net income is expected to grow this year. Moreover, six analysts have revised their earnings estimates upwards for the upcoming period, reflecting a positive sentiment towards the company's earnings potential.

For investors seeking further insights and additional InvestingPro Tips for Impinj Inc, including detailed metrics and analyst predictions, they can explore the full suite of tools and data at There are 18 additional tips available that could provide valuable guidance for investment decisions. To enhance the experience, users can apply the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking comprehensive investment analysis and data.

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