David Farrell, an analyst from Jefferies, maintained the Hold rating on XP Power. The associated price target remains the same with p900.00.
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David Farrell has given his Hold rating due to a combination of factors related to XP Power’s recent financial performance and market conditions. The company’s third-quarter trading update showed a significant improvement in profitability, which was supported by modest revenue growth and cost-saving measures. This progress aligns with management’s confidence in meeting fiscal year 2025 market expectations, a positive sign given the challenges faced recently.
However, the order intake dynamics remained unchanged from the previous quarter, and a further increase in the run rate is necessary to meet fiscal year 2026 expectations. The semiconductor equipment market, which had shown signs of recovery, appears to have stalled, awaiting more decisive capital expenditure decisions by fabs. These factors contribute to the Hold rating, as they indicate a need for further improvement and stability in order intake and market conditions before a more optimistic rating can be justified.
Farrell covers the Industrials sector, focusing on stocks such as Volution, Halma plc, and Morgan Advanced Materials. According to TipRanks, Farrell has an average return of 10.5% and a 64.94% success rate on recommended stocks.
In another report released on October 10, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a p982.00 price target.