Lake Street has revised its price target for Identiv (INVE, Financial), reducing it from $6 to $5, while maintaining a Buy rating. Despite facing a difficult market environment, the firm expressed satisfaction with Identiv's strong performance. However, following the earnings report, Lake Street highlighted that broader economic conditions are presenting immediate challenges and that forecasting for the remainder of the year remains uncertain.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Identiv Inc (INVE, Financial) is $6.17 with a high estimate of $6.50 and a low estimate of $6.00. The average target implies an upside of 96.39% from the current price of $3.14. More detailed estimate data can be found on the Identiv Inc (INVE) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Identiv Inc's (INVE, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Identiv Inc (INVE, Financial) in one year is $2.65, suggesting a downside of 15.61% from the current price of $3.14. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Identiv Inc (INVE) Summary page.
INVE Key Business Developments
Release Date: May 07, 2025
- Revenue: $5.3 million in Q1 2025, compared to $6.7 million in Q1 2024.
- GAAP Gross Margin: 2.5% in Q1 2025, down from 7.3% in Q1 2024.
- Non-GAAP Gross Margin: 10.8% in Q1 2025, compared to 13.4% in Q1 2024.
- GAAP Operating Expenses: $5.6 million in Q1 2025, up from $5.5 million in Q1 2024.
- Non-GAAP Operating Expenses: $4.5 million in Q1 2025, compared to $4.1 million in Q1 2024.
- GAAP Net Loss: $4.8 million or $0.21 per share in Q1 2025, compared to $5.4 million or $0.24 per share in Q1 2024.
- Non-GAAP Adjusted EBITDA: Negative $3.9 million in Q1 2025, compared to negative $3.2 million in Q1 2024.
- Cash and Cash Equivalents: $132.7 million at the end of Q1 2025.
- Cash Usage: $3.3 million in Q1 2025.
- Working Capital: $141.5 million at the end of Q1 2025.
- Q2 2025 Revenue Guidance: Expected to be in the range of $4.9 million to $5.3 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Identiv Inc (INVE, Financial) delivered $5.3 million in net revenue for Q1 2025, slightly above their guidance.
- The company has fully transitioned into the execution phase of its Perform-Accelerate-Transform (P-A-T) growth strategy.
- Identiv Inc (INVE) announced a strategic partnership with Tag-N-Trac to develop IoT solutions for cold chain tracking in the pharmaceutical industry.
- The transition of production from Singapore to a lower-cost facility in Thailand is progressing well, with over 75% of volume already moved.
- Identiv Inc (INVE) has a strong balance sheet with $132.7 million in cash, enabling pursuit of growth initiatives.
Negative Points
- Approximately 25% of Identiv Inc (INVE)'s business is exposed to US import tariffs, creating potential risks.
- The company reported a year-over-year decrease in revenue from $6.7 million in Q1 2024 to $5.3 million in Q1 2025.
- Gross margins decreased due to incremental costs related to the production transition and decreased utilization.
- Identiv Inc (INVE) experienced a GAAP net loss of $4.8 million for Q1 2025, although this was an improvement from the previous year.
- The macroeconomic environment remains uncertain, with potential impacts from shifting trade policies and tariffs.
