IPGP - IPG Photonics rises as Raymond James upgrades after Q2 results
2023-08-02 09:08:42 ET
IPG Photonics ( NASDAQ: IPGP ) shares rose more than 2.5% in pre-market trading on Wednesday as investment firm Raymond James upgraded the fiber laser company after it reported second-quarter results on Tuesday.
Analyst Brian Gesuale raised his rating on IPG Photonics ( IPGP ) shares to strong buy to outperform, while also putting a $170 price target on the stock, noting that the 17.5% decline yesterday is an "overreaction" to near-term macro softness and a lethargic, recovery in China.
"Importantly, our expectation of a robust EV battery capacity tailwind is still intact and all checks continue to point to a multi-year upgrade cycle that will position IPGP for sustainable growth through the end of the decade – a dynamic we believe is largely underappreciated in Street models," Gesuale wrote in an investor note.
In addition, Gesuale added that IPG Photonics ( IPGP ) shares look to be trading at a "trough" multiple and earnings ahead of "secular" growth in the electric vehicle market and a recovery in PMI-sensitive portions of the business.
Analysts are largely cautious on IPG Photonics ( IPGP ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a BUY . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates IPGP a HOLD .
More on IPG Photonics
For further details see:
IPG Photonics rises as Raymond James upgrades after Q2 results