Should you sell your Impinj stock?

Scott Searle of Roth Capital Partners maintained a “Buy” rating on Impinj (Impinj Stock Quote, Chart, News, Analysts, Financials NASDAQ:PI) while lowering his price target to US$180 from US$220, citing macro-driven share weakness rather than deteriorating fundamentals.

In a March 16 report, Searle noted Impinj shares have fallen about 17% since a Feb. 12 CFO fireside chat, compared with a roughly 2% decline in the NASDAQ Composite Index, leaving the stock trading near six times EV/sales, down from roughly 14 times previously.

Searle said the pullback creates a potential entry point for investors given the company’s leadership in RAIN RFID technology.

“Impinj remains the RAIN RFID technological leader and we expect its near-duopoly-like structure with less than 5% market penetration to provide a prolonged growth cycle,” he said, adding the company could generate earnings power north of US$5.00 per share by 2030 on more than US$900-million in sales.

Impinj develops RFID solutions based on the ultra-high-frequency RAIN standard, including endpoint and reader integrated circuits, gateway hardware and system software.

Searle said industry momentum remains healthy despite recent market volatility. Retail apparel — which accounts for more than 60% of endpoint IC demand — grew 3% year-over-year in January, according to U.S. Commerce Department data.

The analyst also expects several potential catalysts to support growth, including a possible Phase III RFID deployment announcement from Walmart in 2026, continued rollout of earlier phases and expanding food-sector pilots with retailers including Kroger.

Searle added that food tagging could represent a significant long-term opportunity, estimating 10 billion to 20 billion potential RFID units across current retail partnerships.

While some investors have raised concerns about potential competition from NXP Semiconductors, Searle noted Impinj continues to receive about US$17-million annually from a cross-licensing agreement signed in 2024 and that any competitive design changes would likely take time to affect the market.

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