- IPG Photonics got hit hard on disappointing second quarter results and weak third quarter guidance, but the shares had been underperforming the larger industrial group on a year-to-date basis.
- Management attributed the lower guidance to temporary issues, but considering data from competitors and comparables, it's worth asking whether local Chinese rivals are gaining more share.
- Innovation is still a significant priority at IPG, and Chinese rivals are still well behind for the most demanding applications, with IPG still seeing attractive opportunities in multiple growth areas.
- High-single-digit revenue growth and mid-teens FCF growth can drive a relatively attractive total return from here.
For further details see:
After A Sharp Drop, IPG Photonics Is Worth Another Look