When I last visited Rofin-Sinar Technologies (RSTI),
I thought that the valuation held some appeal for long-term investors,
but that there were some meaningful operating/execution risks in the
meantime and that I preferred fiber laser specialist IPG Photonics (IPGP). That call has worked out pretty well, as IPGP is up more than 15% from that article, while Rofin-Sinar has fallen about 6%.
Rofin-Sinar
is definitely seeing some pressures in its business today, as
semiconductor, electronics, PV, and medical markets have fallen off. It
is also not obvious to me that the company is making as much progress as
it needs to in closing the gap with IPG Photonics. All of that said,
the valuation is getting less demanding and if management can rebuild
margins back to past levels the shares could do well from here.
Read more here:
Rofin-Sinar Needs To Get Moving
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