- IPG Photonics offers strong leverage to an industrial capex cycle that is already underway.
- In addition to a typical capex spending recovery, IPG should benefit from new end-market opportunities for electric vehicles, solar cells, and additive manufacturing, as well as increased factory automation adoption.
- Strong in-house diode capabilities are a major competitive advantage, but IPG's primary Chinese rival has openly declared its willingness to use price to gain share amid a "buy local" push.
- Beat-and-raise quarters could push an already-high multiple even higher in the short term, but the long-term total return potential at today's price is not that exciting.
For further details see:
IPG Photonics Getting A Little Too Much Love Now