After Avery Dennison (AVY) recently talked up its radio frequency identification expansion for food technology, Impinj (NASDAQ:PI) is likely to be a beneficiary from growth at Walmart (NYSE:WMT), Piper Sandler said.
“We view this as an extremely positive development for overall RFID intelligence labels adoption and expect PI to be a key beneficiary,” Piper Sandler analyst Harsh Kumar wrote in a note to clients. “We note that WMT has already had two successful phases with PI, so we are confident that PI will likely be involved in the implementation of this next stage.”
Avery Dennison is an intelligence label supplier and partner for Impinj.
Kumar, who has an Overweight rating and $230 price target on Impinj, added the move by Walmart to start tagging groceries could be a “significant catalyst” for Impinj and ultimately provide access to the food RFID industry.
“In addition to the partnership, AVY management noted that the food, logistics, and industrial markets grew at mid-single-digits and food is now gaining significant traction,” Kumar added. “We also believe the self-checkout grocer customer PI is targeting for 2026 can be a significant catalyst for revenue and earnings growth as well.”