Truist Securities Starts Cognex (CGNX) at Buy, 'End Markets at Cyclical Trough'

Truist Securities analyst Jamie Cook initiates coverage on Cognex (NASDAQ: CGNX) with a Buy rating and a price target of $47.00.

The analyst comments "End Markets at Cyclical Trough: Cognex’s two largest markets—Consumer Electronic and Logistics—experienced hyper growth driven by the pandemic-era acceleration of e-commerce and as customers bought more electronic devices to accommodate work/school from home. From 2019 to 2021, CNGX sales increased 43% and EBITDA grew 96%. Sales have corrected and are now at a run-rate of pre-pandemic levels. Q4’23 saw sales flat sequentially, implying we are approaching the trough. The company expects Q1'24 sales to be flat sequentially although management sees a path for growth in the back half of 2024. More importantly, increased adoption and long-term secular drivers support double-digit top line growth through the cycle, in our view."

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 $41.30 yesterday.

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