Impinj (PI) has an attractive long-term total addressable market, but the visibility is challenged, UBS said in a note Thursday.
Impinj is a market leader in RAIN RFID, a passively powered wireless technology using radio waves to track items, enabling bulk scanning without line-of-sight. The technology is adopted mostly in retail and logistics, the report said.
The note said Impinj holds a strong competitive position in the business with a vast addressable market, but with penetration of just over 1% after about 20 years.
"Still, the set-up through 2026 looks challenged given moderating tailwinds from mature programs, retail uncertainty from tariffs/inflation, and unpredictable ramps at Walmart and Kroger," the report said.
UBS analysts estimated 80% to 90% of its revenues coming from retail and logistics end markets.
UBS initiated coverage on the company with a neutral rating and a price target of $200.
Price: 159.21, Change: -9.85, Percent Change: -5.83
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