Impinj stock has been on an incredible run this month amid positive sentiment for the tracking-chip maker. PI stock is trading in record high territory.
On Sept. 11, PI stock broke out of a seven-week consolidation pattern at a buy point of 181.88, according to IBD MarketSurge charts.
In intraday trading on Thursday, Impinj stock hit an all-time high of 220.17. And, through Thursday, PI stock had risen for 14 consecutive trading sessions.
However, at least one analyst thinks Impinj's valuation is getting a little stretched.
Piper Sandler analyst Harsh Kumar on Friday reiterated his overweight rating on Impinj and raised his price target on PI stock to 225 from 180.
"While we maintain that Impinj will be able to put up outperforming results, benefiting from traction in its end markets, the recent stock move makes it difficult for investors to be incremental buyers in the near term," Kumar said in a client note.
PI Stock Pulls Back On Cautious Report
On the stock market today, Impinj dropped 2.1% to close at 213.31.
Impinj makes tiny tracking chips that can connect items to the internet cloud for customers in retail, transportation, logistics and other industries. Its wireless chips track such things as retail store items, luggage, automobile parts and merchandise shipments.
"Overall, we continue to believe in the fundamentals over the next 12+ months, but see the stock valuation as stretched at current levels," Kumar said.
Positives for Impinj include its business diversification efforts away from its core in retail, especially apparel, and possible international expansion, Kumar said.
PI stock ranks fifth out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. Impinj has an IBD Composite Rating of 97 out of 99.
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