Cognex (CGNX) See Reporting Q2 at High End of Guidance - Needham & Company

July 12, 2013 7:32 AM EDT
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Price: $67.31 +4.15%

Rating Summary:
    6 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Needham & Company lifted its price target on Buy-rated Cognex (NASDAQ: CGNX) from $47 to $56 Friday, saying new products, ongoing strength in the factory automation market - including auto ID readers - is likely to drive Q2 to the high end of guidance.

Given the stock it as its highest level in over 10 years, analyst James Ricchiuti said it is fair to ask if there's much left in the tank. He, however, believes the stock can move even higher as the company leverages investments made in product and sales channel development in the factory automation market over the past year.

"With CGNX in the midst of major new product rollouts in factory automation, including the fast-growing auto identification market, now 25% of revenues and growing in excess of 20% annually, we believe the company is poised for accelerating revenue growth over the next two years," he comments. "Even with the recent run-up, the stock trades at a reasonable 19x our 2014 non-GAAP EPS est. adjusting for cash of over $9/share."

The firm maintained FY 2013 EPS estimates of $1.65 and raised FY 2014 EPS estimates from $2.00 to $2.05.

Cognex reports results after the close on July 29th.

For an analyst ratings summary and ratings history on Cognex click here. For more ratings news on Cognex click here.

Shares of Cognex closed at $51.20 yesterday.

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