Needham & Company Raises Price Target on Cognex Corp (CGNX) Following Strong 2Q
Needham & Company reiterated a Buy rating on Cognex (NASDAQ: CGNX), and raised the price target to $55.00 (from $42.00), following the company's 2Q earnings report. Revenues totaled $147.3M, 5% above prior guidance of $135-140M and 7% above consensus' $138.1M. EPS totaled $0.50, well above consensus' $0.43.
Analyst James Ricchiuti commented, "CGNX delivered an exceptionally strong Q2 report, with revs coming in 5% above the high end of guidance. Mgmt provided upside Q3 guidance, driven by renewed optimism that the consumer electronics business (proxy for the Apple business) will be up in 2016, robust demand in logistics and ongoing strength in automotive. Excluding consumer electronics, CGNX said the combined logistics & factory automation business was up 20% in Q2. While mgmt did not provide 4Q guidance, consistent with its practice of giving guidance a qtr out, we believe CGNX will see normal seasonal weakness in the logistics and consumer electronics markets. We maintain our Buy given underlying growth potential of the business, though we would not be surprised to see the stock take a breather near term after what is likely to be a solid move up at the open."
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Shares of Cognex closed at $45.32 yesterday.