IPG Photonics Faces Tariff Challenges and Weaker Outlook, Analyst Reiterates Sell Rating

Analyst Michael Feniger from Bank of America Securities reiterated a Sell rating on IPG Photonics (IPGP – Research Report) and increased the price target to $55.00 from $52.00.

Michael Feniger has given his Sell rating due to a combination of factors impacting IPG Photonics. The company is facing significant challenges from tariffs, which have led to shipment delays and increased costs, resulting in a weaker second-quarter outlook. These tariff-related issues have caused a notable impact on the company’s top-line and gross margins, creating a headwind that overshadows some of the positive dynamics within the company.
Despite some areas of strength, such as solid bookings in China and new applications in medical and e-mobility sectors, the overall industrial backdrop remains weak. The company’s efforts to mitigate the tariff impact, such as moving manufacturing and adjusting sourcing strategies, are underway but will take time to fully materialize. Given these challenges and the slow recovery expected, Feniger reiterates an Underperform rating, reflecting limited upside potential for the stock.

According to TipRanks, Feniger is a 5-star analyst with an average return of 12.0% and a 65.89% success rate. Feniger covers the Industrials sector, focusing on stocks such as United Rentals, Caterpillar, and Cummins.