Needham analyst James Ricchiuti lowered his price target on IPG Photonics to $150, saying his estimates for the second half of 2019 and for 2020 are being reduced given the "more uncertain" macro environment evidenced by the latest PMI data and slower demand in "key verticals" such as automotive. The analyst notes that his prior estimates overestimated the extent of the company's recovery, adding that pricing pressure from suppliers in China could also cap the gross margin recovery that he was previously modeling. Ricchiuti maintains his Buy rating on IPG Photonics and claims that greater diversification of its product portfolio and a more "balanced geographic distribution" should help.