Stifel Resumes IPG Photonics (IPGP) at Buy

Stifel analyst Ruben Roy resumes coverage on IPG Photonics (NASDAQ: IPGP) with a Buy rating and a price target of $110.00.

The analyst commented, "We are resuming coverage of IPG Photonics (IPGP) with Buy rating and $110 target price. IPGP is a global market leader in fiber laser technology with an expanding product portfolio and a focus on differentiated products aimed at high value growth markets. Near-term, solid growth in emerging growth products is being offset by macro and currency headwinds, mostly in the Europe and China geographies. We believe that these issues are widely known and reflected in IPGP valuation with shares trading at an EV/S multiple of 2.3x our 2023 revenue estimate versus a five-year average of 4.9x. We expect TAM expansion in secular growth markets such as e-mobility (lithium batteries), solar cell manufacturing, medical devices, and 3D printing to act as drivers towards management’s target for double-digit top-line sales growth. Net-net, we believe that current sentiment and valuation provide a compelling longer-term opportunity."

For an analyst ratings summary and ratings history on IPG Photonics click here. For more ratings news on IPG Photonics click here.

Shares of IPG Photonics closed at $85.48 yesterday.

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