In a report released today, David Farrell from Jefferies maintained a Hold rating on XP Power (XPP – Research Report), with a price target of p900.00.
David Farrell has given his Hold rating due to a combination of factors, primarily revolving around the delayed recovery in XP Power’s revenue momentum. The company’s performance at the end of fiscal year 2024 was not as strong as anticipated, prompting a downward revision of EBITA forecasts for the fiscal years 2025 and 2026 by approximately 30%.
Despite the company’s efforts to optimize its cost structure, the anticipated operational leverage is expected to materialize more significantly in fiscal year 2026 rather than 2025. Consequently, the price target for XP Power’s stock has been adjusted to 900p, and the Hold rating has been reaffirmed.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of XPP in relation to earlier this year.