Jul 23rd 2012 - Edison Investment Research today published a report on XP Power (XPP.L, LSE:XPP, LON:XPP) entitled "Vertical Integration Strategy On Track". In summary, the report says:
Despite a weak market environment, XP Power (XP) continues to deliver on its in-house manufacturing strategy and is seeing good design win activity. As expected, weaker orders in H211 have affected H112 numbers, and we trim our FY12 and FY13 forecasts to reflect continued weak market conditions. Despite this, we expect XP will still generate 20%+ operating margins and strong cash flows. In our view, the current valuation does not adequately reflect XP’s strong profitability.
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