The company maintains its Buy rating and $90 price target on IPG shares.
"While we expect further significant revisions to estimates to be behind the company with guidance for this year having already been reduced significantly from 'teens' revenue growth to the current 5–10 percent level, IPGP stock is currently trading at a significant discount to historical valuation multiples," wrote Canaccord.
The analysts said the stock was trading at an EV/EBITDA multiple of 8.6x NTM consensus expectations, which compares to the two- and five-year average multiple of 9.7x estimates.
The analysts expect the revenues to stand at $242 million for 2Q16, $958.2 million for 2016 and $1.1 billion for 2017. The EPS estimates for 2Q16, 2016 and 2017 are $1.19, $4.62 and $5.23, respectively. IPG is scheduled to release the second-quarter results on July 28.
Full ratings data available on Benzinga Pro.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.