Needham & Company Raises price Target on Cognex Corp (CGNX) Following Solid 1Q and Guidance
Needham & Company reiterated a Buy rating on Cognex Corp (NASDAQ: CGNX), and raised the price target to $42.00 (from $40.00), following the company's 1Q earnings report. Revenue was reported at $96.2M, above prior guidance of $91M- $94M and consensus $93M, benefiting from stronger demand from the logistics market. Management guided to Q2 revenue of $135-140M, above consensus' $129.8M.
Analyst James Ricchiuti commented, "CGNX delivered a better than expected Q1 report and provided stronger than expected Q2 guidance reflecting a stronger showing from the logistics market and a somewhat larger than expected contribution in June from the consumer electronics market. While the Q1 report and Q2 guide will likely allay concerns investors had ahead of the print, management was more cautious on the outlook for the consumer electronics business for the full year. Excluding consumer electronics, the broader factory automation business is expected to be up in 2016. We were encouraged by the report and not particularly surprised by the more measured view of activity in its largest market. Additionally, CGNX is continuing to expand its TAM in the fast-growing logistics market, which remains a key growth driver over the next few years. Maintain Buy."
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Shares of Cognex closed at $35.21 yesterday.