DA Davidson analyst Thomas Diffely lowered his price target on IPG Photonics to $175 after its mixed Q4 results and lower than expected outlook for Q1. The analyst notes that the macro weakness in China and Europe are still weighing on its near-term outlook, with the former market being the "biggest unknown", while pricing pressures continue to impact the 1kW-3kW laser segment. Diffely is keeping his Buy rating however, citing some positive data points in the past few months which include some signs of China order activity picking up, traction for the company's new pulsed lasers, and "nice" growth in North America laser sales.