PI - Impinj: Walmart's RFID Expansion Legal Clarity Significantly Boosts Outlook

2024-06-20 07:23:11 ET

Summary

• Impinj has shown strong performance with a 64% stock increase, driven by demand for RFID products and a legal settlement with NXP.
• Legal settlement with NXP Semiconductors creates a royalty income stream for Impinj, boosting adjusted EBITDA margins and revenue growth outlook.
• Models predict strong double-digit upside for Impinj, with revenue growth in the mid-teens and a 40-50% CAGR growth in adjusted EBITDA through FY26.

Investment Thesis

Impinj ( PI ), the leading maker of RFID products and solutions, has demonstrated some strong performance in the markets this year, with the stock rising ~64% as compared to the broader markets, as illustrated in Exhibit A below....

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