Needham & Company Lowers Estimates on Cognex (CGNX) to Reflect Slower Economic Growth; Valuation Attractive Following Pullback
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Price: $65.63 +6.56%
Rating Summary:
21 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Cognex (NASDAQ: CGNX) price target lowered from $44 to $38.
Needham analyst says, "CGNX shares are down about 11% over the past three months versus a 1% decline for the Nasdaq Composite in what we regard as exaggerated concerns about the impact of the slowing economy on CGNX’s business. While we are tempering our estimate for Q4 and 2012 to reflect the slowing economy, the weakening macro outlook appears more than priced into the stock at current levels. We believe CGNX’s factory automation business can show solid growth in 2012 driven by new products and growth in new geographies. CGNX shares are currently trading at 12x our 2012 EPS estimate, adjusted for net cash."
"We are shaving our Q4 EPS estimate to $0.41 from $0.44. For 2012, we are reducing our EPS estimate by a dime, to $1.75, on revenues of $351.7M (up 9%)."
For more ratings news on Cognex click here and for the rating history of Cognex click here.
Shares of Cognex closed at $29.58 yesterday.
Needham analyst says, "CGNX shares are down about 11% over the past three months versus a 1% decline for the Nasdaq Composite in what we regard as exaggerated concerns about the impact of the slowing economy on CGNX’s business. While we are tempering our estimate for Q4 and 2012 to reflect the slowing economy, the weakening macro outlook appears more than priced into the stock at current levels. We believe CGNX’s factory automation business can show solid growth in 2012 driven by new products and growth in new geographies. CGNX shares are currently trading at 12x our 2012 EPS estimate, adjusted for net cash."
"We are shaving our Q4 EPS estimate to $0.41 from $0.44. For 2012, we are reducing our EPS estimate by a dime, to $1.75, on revenues of $351.7M (up 9%)."
For more ratings news on Cognex click here and for the rating history of Cognex click here.
Shares of Cognex closed at $29.58 yesterday.
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