Needham & Company Reiterates a 'Buy' on IPG Photonics (IPGP); Concerns are Overblown, Current Levels are Attractive
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Price: $85.79 +2.20%
Rating Summary:
13 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 10 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on IPG Photonics (NASDAQ: IPGP).
Needham analyst said, "Our rating upgrade on IPGP following the company’s strong Q3 report and solid Q4 outlook in hindsight was clearly premature, with the stock having fallen sharply in the last two months. The bear story in the stock ranges the potential for increased competition to cut into the strong competitive lead IPGP has established in the rapidly growing fiber laser market to the likelihood of weaker end market demand, including in China, a source of strong growth for the company in 2011. The upshot the bears believe will result in 2012 being well below Street expectations. We believe these concerns are overblown and we view the risk-reward opportunity at current levels as attractive."
"At current prices, IPGP shares are trading at 12x our 2012 EPS estimate, adjusting for net cash of $3.50 per share, representing a significant discount to its growth rate."
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 $35.61 yesterday.
Needham analyst said, "Our rating upgrade on IPGP following the company’s strong Q3 report and solid Q4 outlook in hindsight was clearly premature, with the stock having fallen sharply in the last two months. The bear story in the stock ranges the potential for increased competition to cut into the strong competitive lead IPGP has established in the rapidly growing fiber laser market to the likelihood of weaker end market demand, including in China, a source of strong growth for the company in 2011. The upshot the bears believe will result in 2012 being well below Street expectations. We believe these concerns are overblown and we view the risk-reward opportunity at current levels as attractive."
"At current prices, IPGP shares are trading at 12x our 2012 EPS estimate, adjusting for net cash of $3.50 per share, representing a significant discount to its growth rate."
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 $35.61 yesterday.
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