IPG Photonics (NASDAQ:IPGP) has continued to have a difficult time of it. Russia’s invasion of Ukraine, and the sanctions that followed, were always going to make 2022 more challenging for the company, but IPG Photonics has also had to deal with interruptions in China’s economy from its COVID-19 policies, as well as emerging weakness in many short-cycle industrial markets.
I thought IPG Photonics had some high-risk contrarian attributes roughly a year ago, but the shares have lost another quarter of their value, lagging the broader industrial space, but performing more in line with nLIGHT (LASR) and Chinese laser rivals Han’s Laser (002008.SZ) and Raycus (300747.SZ). At this point, I do see elevated risks to short-cycle demand, but I also think the share price discounts a lot of that. I’m reluctant to double-down on a “buy” call that has failed, but mid-single-digit growth can support a double-digit return from here, and I don’t think that’s an overly demanding outlook.
Read the full article at Seeking Alpha:
A Turn In Short-Cycle Industrial Demand Only Adds To IPG Photonics' Challenges
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