Hold Rating Maintained as XP Power’s FY26 Recovery Appears Largely Priced In

Jefferies analyst David Farrell maintained a Hold rating on XP Power today and set a price target of p1,140.00.

David Farrell has given his Hold rating due to a combination of factors, notably his view that consensus expectations for a strong EBITA rebound in FY26 already capture much of the anticipated improvement in trading conditions. While demand indicators across XP Power’s core markets are turning more positive and margins have begun to recover, the lingering impact from the partial loss of high-margin Chinese business still creates a measurable revenue and profit drag into FY26.

At the same time, the company’s balance sheet has strengthened, with leverage at a comfortable level and scope for further debt reduction, which may enable a return of capital through dividends or share buybacks as FY26 progresses. However, given that FY25 results were broadly in line with prior guidance and current estimates appear reasonable rather than conservative, Farrell sees limited near‑term upside to justify a more positive stance, leading him to maintain a Hold recommendation.

Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XPP in relation to earlier this year.