IPG Photonics (IPGP) PT Lowered to $165 at Needham & Company

Needham & Company analyst James Ricchiuti lowered the price target on IPG Photonics (NASDAQ: IPGP) to $165.00 (from $205.00) while maintaining a Buy rating following results.

The analyst commented, "IPG delivered a mixed Q4 report yesterday. While revenues were above the top-end of guidance and EPS above the midpoint, mgmt provided weaker-than-expected EPS guidance for Q1 and expects revenue growth in 2022 of 3%-6%, below consensus 9.5%. IPG delivered 8% y/o/y revenue growth in Q4 as solid growth in N. America and Europe offset weakness in the China cutting market. While we are taking our numbers down for 2022, we are more encouraged by ongoing transition in IPG’s business away from the more competitive legacy China cutting business to stronger growth, less competitive emerging areas (EV, medical, and additive manufacturing). Despite the weaker top-line, IPG’s margins remain well above its peers. We believe the more balanced mix of revenues should be a positive for the stock over the next 1-2 years. Maintain Buy."

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