Going positive on IPG Photonics (IPGP) back in August has turned out to be a bad call. Not only has geopolitical tension with Russia created worries about how IPG Photonics could be impacted by potential sanctions against Russia, but the company appears to be losing even more share in China, and management is now talking about 2022 as a "reset" year for the business at a time when short-cycle industrial companies are doing rather well from a revenue perspective.
IPG shares are definitely beaten down, falling almost 20% from the time of that last article and trading at a forward multiple that the shares haven't seen in approximately six years. I think there's still some appeal here for patient contrarian investors, but one of my long-time concerns about the company - growing competition from Chinese fiber laser companies - is still very much in play and I think investors need to be aware of the risks around this business.
Follow this link to the full article:
IPG Photonics Hit Hard By Ongoing Share Loss And Global Tensions
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