UPDATE: D.A. Davidson & Co. Reiterates on IPG Photonics as Improving Economic Activity Supports Thesis
In a report published Friday, D.A. Davidson & Co. analyst Avinash Kant reiterated a Buy rating on IPG Photonics (NASDAQ: IPGP), and raised the price target from $75.00 to $83.00.
In the report, D.A. Davidson & Co. noted, “Based on monthly manufacturing PMI numbers in the U.S., China (HSBC index), and the Euro zone we track, we observe that trends have been gradually improving over the past six months. PMI numbers in all three regions stood above 50% (above 50% indicates expansion, below contraction). Results in the United States have been notably strong, with seven sequential months of improvement and a 57.3% PMI posted in November. Similarly, Euro zone PMI has stood above 50% over the past five months, snapping a near 2-year stretch at contraction levels. Despite concerns, the HSBC Chinese PMI continues to hover above 50% and has indicated expansion over the past four months. While we acknowledge that PMI is a broad-based indicator of manufacturing activity, we feel these trends reflect positively for IPGP as manufacturing demand fuels further fiber laser adoption.”
IPG Photonics closed on Thursday at $71.49.
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