Shares of Impinj, Inc. (NASDAQ:PI) spiked today after Goldman Sachs analyst Toshiya Hari initiated coverage of the stock with a buy rating.
The tech stock jumped by as much as 17.3% today and was up by 14.3% at 2:17 p.m. EST.
Hari set the company's price target at $46 per share and said in an investor note that Impinj is at the "precipice of a significant untapped market" in the radio-frequency identification (RFID) space.
The RFID technology market will be worth an estimated $40.5 billion by 2025, and Hari believes the company will benefit as the market grows over the next few years.
Investors were optimistic about Impinj's stock following the release of the note, which added to the positive sentiment many investors have had toward the stock this month. After initially crashing following the release of its third-quarter results at the end of October, Impinj's shares have climbed steadily in November. With today's gains, Impinj's share price is up 56.8% year to date.
While investors are often optimistic about a company following an analyst issuing a buy rating, current Impinj investors should remember that nothing has fundamentally changed about the company's business today. This means that there's really no reason to buy more shares of the company or sell them, based on an analyst's investor note. Instead, investors should stick with their original investing thesis that they came to when they initially bought shares.