Hold Rating Maintained as Semiconductor Order Rebound Clashes with Modest Revenue Momentum

Analyst David Farrell from Jefferies maintained a Hold rating on XP Power and keeping the price target at p1,140.00.

David Farrell has given his Hold rating due to a combination of factors including a sharp rebound in first‑quarter orders, particularly from semiconductor customers, which signals that key end markets are emerging from a period of inventory reduction and should support revenue growth. However, management itself cautions that such elevated order levels are unlikely to be sustained, implying that the recent strength may reflect restocking dynamics rather than a fully established upcycle.

At the same time, reported revenue growth remains modest, with quarter‑on‑quarter sales declining in line with seasonal patterns and the impact of lost export licences and production shifts, limiting near‑term earnings momentum. Consensus expectations for the full year therefore remain unchanged, suggesting limited scope for positive estimate revisions or multiple expansion in the short term, and justifying a neutral, Hold stance pending clearer evidence of a durable growth acceleration.