David Farrell, an analyst from Jefferies, maintained the Hold rating on XP Power (XPP – Research Report). The associated price target remains the same with p900.00.
David Farrell’s rating is based on a combination of factors that suggest a cautious approach towards XP Power’s stock. The recent trading update for the first quarter of 2025 showed revenue and order intake slightly exceeding expectations, which is a positive sign. However, despite the improvement, there is a need to remain cautious due to the previous decline in revenue and the ongoing destocking phase that has impacted order intake.
Furthermore, while the company has shown resilience in its pricing strategy, especially with a significant portion of its revenue coming from exports to the US, there are concerns about the consensus numbers for the fiscal year 2025 being overly optimistic. Although the risk of downgrades does not seem severe, and cash generation has been better than expected, these factors contribute to a Hold rating as the outlook remains uncertain.
According to TipRanks, Farrell is a 4-star analyst with an average return of 6.0% and a 55.47% success rate.