Flir Shares Lifted on Report Amazon Starts Use of Thermal Cameras

Flir Systems Inc.’s (FLIR) shares soared amid investor prospects the company’s thermal cameras might be deployed for checking employees’ temperature at Amazon’s Whole Foods stores and at its warehouses.

The company’s stock rose for a second day, advancing as much as 10% to trade around $43.90 making it the biggest gainer on the S&P Index. Flir Systems, which makes thermal image cameras to screen for elevated skin temperature has been touted to be among the potential vendors that could supply Amazon. The world’s largest online retailer has started to deploy thermal cameras at its warehouses to detect feverish employees infected with the coronavirus, Reuters reported.

Amazon has reportedly readied the necessary technology to set up the thermal cameras in at least six warehouses outside Los Angeles and Seattle, where the company is based.  The cameras will also replace thermometers at entrances to many of Amazon’s Whole Foods stores.

William Blair analyst Michael DiPalma reiterated his Buy rating for the company following the media report. DiPalma believes that even if Amazon won’t use Flir as its vendor for thermal cameras, he still expects the U.S.-based company to benefit from what may become a major trend as other companies follow the online retailer’s example.

Wall Street analysts have a Moderate Buy consensus rating on the stock based on 3 Buys, 3 Holds and 1 Sell. The $44.67 average price target implies 8.2% upside potential in the shares in the coming 12 months. (See Flir Systems stock analysis on TipRanks).

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