Needham & Company Cuts Price Target on IPG Photonics (IPGP) Following 2Q Beat

Needham & Company maintained a Buy rating on IPG Photonics (NASDAQ: IPGP), and cut the price target to $96.00 (from $98.00), following the company's 2Q earnings report. Revenues increased to $252.8M, above prior guidance of $235M- $252M and solidly above consensus $243.8M. EPS of $1.25 was at the upper end of guidance of $1.10-$1.25 and above Street $1.19.

Analyst James Ricchiuti commented, "IPGP yesterday before the market reported better than expected Q2 results, with revenues above guidance and EPS coming in above Street expectations. While bookings were generally solid, with the B-T-B above 1.0, guidance for Q3 was modestly below expectations. IPGP reaffirmed its outlook for full-year revenue growth of 5-10%, though with revenues up 6% through the 1H and expected to be up 4% at the midpoint of Q3 guidance, we believe the lower end of the range for 2016 is clearly more realistic. We are trimming our 2H and 2017 EPS estimates modestly, mainly reflecting higher op-ex including amortization of intangibles related to the recent acquisition of Menara Networks. We see little downside risk in IPGP shares at current levels, with the shares trading at 14x our out-year EPS estimate adjusting for net cash. Maintain Buy."

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 $84.25 yesterday.

You May Also Be Interested In

• JPMorgan Upgrades Aker Solutions ASA (AKSO:NO) (AKRTF) to Neutral
• WPP Plc (WPP:LN) (WPP) PT Raised to GBP9 at JPMorgan
• Randstad NV (RAND:NA) (RANJY) PT Lowered to EUR51 at RBC Capital