Seeking Alpha: IPG Photonics Continuing To Expand Its Fiber Laser Opportunity

In the six months since I wrote on IPG Photonics (IPGP) as a Top Idea ("IPG Photonics Looking To Innovation And Integration") the shares have registered a solid 26% gain. In that time, whatever changes have come have largely been to IPG Photonics' credit - the company maintains a significant lead over the likes of Rofin-Sinar (RSTI) and the company's aggressive product development efforts continue to expand the company's addressable market and long-term revenue potential.

I believe IPG Photonics remains a quality name in this space, but the shares are not as obviously cheap as they once were. I still expect long-term revenue growth in the neighborhood of 12% and I am still willing to project long-term FCF margins in the low 20%'s. There is upside to those numbers if the company's addressable markets (and/or share within them) expand even faster, but these shares look more like a "bullish hold" than a strong buy today.

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IPG Photonics Continuing To Expand Its Fiber Laser Opportunity