David Farrell, an analyst from Jefferies, maintained the Hold rating on XP Power. The associated price target is p900.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
David Farrell’s rating is based on a combination of factors that reflect both the challenges and potential opportunities for XP Power. The company’s EBITA for the first half of 2025 was significantly lower than expected, primarily due to foreign exchange headwinds, which impacted the financial results. Despite this, the order intake has shown signs of stabilization, particularly in the Industrial Technology and Healthcare sectors, suggesting a normalization in demand patterns.
However, the company’s financial performance still faces uncertainties, as reflected in the lower revenue and EBITA margins compared to previous estimates. On a positive note, XP Power has implemented cost reduction measures that are expected to support profitability in the second half of the year, along with an improvement in gross margins. These mixed signals, including the company’s efforts to manage debt levels and achieve cost efficiencies, have led David Farrell to adopt a cautious stance, resulting in a Hold rating for the stock.