Investment Thesis
IPG Photonics Corp (IPGP) is significantly exposed to the drop in the economic activity of its end-markets. Further, higher operational and concentration risks, coupled with higher manufacturing costs, have strengthened our "SELL" rating on IPGP.
Source: Bloomberg
Company overview
The company develops and manufactures a range of high-performance fiber lasers, fiber amplifiers, and diode lasers used in various applications, primarily in the materials processing industry. The main markets of its products are original equipment manufacturers and system integrators. Hence. IPGP is a cyclical company with a high correlation with global economic