Deutsche Bank Starts Cognex (CGNX) at Buy

Deutsche Bank initiated coverage on Cognex (NASDAQ: CGNX) with a Buy rating and a price target of $74. Analyst Karen Lau anticipates strong growth.

"The machine vision industry has been growing at an average high single to low double-digit rate over the years. Cognex product sales for factory automation applications have exceeded that market growth rate and realized mid-teens CAGR over the past 10 years. Going forward, we expect Cognex’s further penetration into the logistics ID and mobile computing market, rising machine vision content in the consumer electronics assembly lines, 3D products adoption, as well as China automation investments to support management’s target of 20% factory automation sales CAGR. Automation investment boost by potential protectionist trade policies (which could drive manufacturers domestically and overseas to invest more heavily in automation to improve efficiency and competitiveness) would also contribute positively to our thesis," said the analyst.

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 $59.40 yesterday.

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