IPG Photonics downgraded to Outperform from Strong Buy at Raymond James

Raymond James downgraded IPG Photonics (IPGP) to Outperform from Strong Buy with a price target of $180, up from $97. The firm’s estimates and the price target are being raised following a strong Q4 beat, but the rating is trimmed after a sharp multiple re-rating and more than 100% year-to-date share appreciation, the analyst tells investors in a research note. IPG delivered revenue and earnings well above expectations with book-to-bill above 1x, signaling accelerating core demand, while expansion into defense, medical, and systems markets supports a higher-margin, less-cyclical mix, though much of the near-term upside now appears priced in, the firm says.