Farrell Maintains Hold on XP Power as End-Markets Stabilize; Keeps $1,140 Price Target Unchanged

David Farrell, an analyst from Jefferies, maintained the Hold rating on XP Power. The associated price target remains the same with p1,140.00.

David Farrell has given his Hold rating due to a combination of factors, including mixed signals from a key peer and the broader demand environment. Advanced Energy’s results confirm that several end-markets relevant to XP Power, such as industrial and medical, are stabilizing and starting to recover, which supports a more constructive medium-term outlook but not yet a clear inflection.

Semiconductor demand is also projected to improve meaningfully later in the year, and overall revenue growth guidance for the peer has been raised to the low-to-mid 20% range, with margins recovering above 40%. However, the negative share price reaction to Advanced Energy’s strong update highlights ongoing market caution, leading Farrell to keep a balanced stance and maintain a Hold rating on XP Power, with the price target unchanged at $1140.

Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of XPP in relation to earlier this year.