Shares of Impinj (NASDAQ:PI) climbed 24.4% in January, according to data from S&P Global Market Intelligence, after an analyst upgraded the tech stock on speculation it could benefit from Walmart's impending ramp of radio-frequency identification (RFID) initiatives.
Impinj climbed as high as 13% on Jan. 22, 2020 alone when Dougherty analyst Charles Anderson reaffirmed his "buy" rating on the stock. Anderson also assigned a $38-per-share price target, pointing to research indicating Walmart will begin using RFID tags to better track inventory and checkout for apparel products later this year.
Of course, investors should tread lightly here as neither Walmart nor Impinj has announced a formal agreement to use Impinj's technology as part of the reported RFID roll-out process. But make no mistake, Impinj could win big if Walmart's approval serves to open the floodgates as more retailers embrace RFID solutions going forward.
Perhaps investors will receive more color to that end when Impinj releases fourth-quarter 2019 results on March 2, 2020. But in the meantime, I can't blame Impinj investors for bidding up the stock last month in response to that encouraging analyst prediction.