Needham & Company Downgrades IPG Photonics (IPGP) to Hold

Needham & Company analyst James Ricchiuti downgraded IPG Photonics (NASDAQ: IPGP) from Buy to Hold.

The analyst commented, "We are lowering our rating on IPGP to Hold from Buy given signs that point to a stagnant global manufacturing environment looking out to the early part of 2020, as well as ongoing concerns about competition. While last week’s partial trade deal between the U.S. and China was cheered by investors, elevating shares of IPGP and other industrial tech names in our coverage universe, we’re not convinced that it will meaningfully change the underlying demand picture in some of IPGP’s key end markets. Our main concern is that the unsettled global macro environment resulted in bookings in the core materials processing business in Q3 that will be insufficient to support our previous Q4 and 2020 revenue expectations. Along with the pricing pressure at the low end of the fiber laser market, this could pose additional risk to earnings estimates."

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 $136.01 yesterday.

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