IPG Photonics price target lowered to $68 from $74 at Citi

Citi lowered the firm’s price target on IPG Photonics to $68 from $74 and keeps a Sell rating on the shares. The analyst thinks IPGP‘s Q2 guidance could only show the normal seasonality, rather than signs of demand stabilization or improvement given the “lukewarm” global PMIs plus delayed electric vehicle battery and solar project investment globally. Citi is also concerned that the competition on non-welding applications from Chinese peers such as Raycus or Max Photonics could start extending from China to other Asian countries given Chinese companies’ faster export sales growth.