Piper Sandler on Impinj Inc (PI): 'Q1 Guidance Weak, We Are Buyers of the Pullback'; PT Lowered

Piper Sandler analyst Harsh Kumar lowered the price target on Impinj Inc (NASDAQ: PI) to $140.00 (from $235.00) while maintaining a Overweight rating.

The analyst commented: "Q1 Guidance Weak, We Are Buyers of the Pullback; We are buyers of shares of PI on the miss from December quarter earnings. To us, the reaction in the stock seems overblown. For starters, it appears that the total extent of inventory excess appears to be in the range of 2-3 weeks and is limited to mostly one customer in the logistics space. We feel that PI is pursuing an extremely aggressive strategy to fix this issue and hence the significant guide down to March quarter revenues and associated financial metrics. We suspect that the majority of the inventory clean would be carried out and accomplished in the March quarter with a small pocket left for the June quarter. That said, we would expect the stock to react ahead of the cleanup and we feel that the bottom has been set in with this miss. We reiterate OW and reduce our PT to $140."

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