DA Davidson analyst Thomas Diffely lowered his price target on IPG Photonics to $220 after its soft Q3 outlook, saying that the macroeconomic and geopolitical concerns are starting to weigh on demand. The analyst notes that the growth of high-power CW lasers in China is waning amid softer welding conditions in the country's auto and battery industries, while the medium-power laser market in Europe is in a "digestion period". Diffely keeps his Buy rating on IPG Photonics longer term, adding that the core trends of a "multi-year shift towards higher powered lasers remain robust" while the company maintains its dominant position in the ultra-high power fiber laser market.