Needham analyst James Ricchiuti noted that IPG Photonics' guidance was much weaker than expected as concerns among customers in China and Europe are making them cautious, though he believes the stock is seeing an overreaction. The 26% selloff today suggests a collapse in demand, but the book-to-bill was above 1.0 for the quarter and the tone of business has not deteriorated in July, Ricchiuti tells investors. He sees the pullback offering an opportunity to buy a category leader in what is still an attractive growth market and keeps a Buy rating on IPG Photonics shares, though he lowered his price target to $215 from $280.