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Investing.com - KeyBanc maintained its Overweight rating and $50.00 price target on Cognex (NASDAQ:CGNX) despite the stock’s underperformance following recent earnings results. This target represents approximately 21% upside from the current price of $41.31, while the broader analyst consensus has a target implying 15% potential upside.
The machine vision company’s shares fell after reporting in-line third-quarter results and fourth-quarter guidance, with the sell-off likely reflecting investor concerns about management’s preliminary 2026 outlook. InvestingPro data shows the stock has taken a significant 14.56% hit over the past week, though it remains up nearly 52% over the last six months.
Cognex executives projected mid-single-digit growth for 2026, basing this conservative forecast on current choppy macroeconomic indicators, primarily global PMI figures.
KeyBanc noted that despite this cautious outlook, Cognex management maintained a constructive tone regarding most of its served end markets and expects to drive 20%+ earnings growth even in a mid-single-digit growth scenario.
The investment firm continues to view the risk/reward profile for Cognex as compelling, supporting its decision to maintain both the Overweight rating and $50 price target. According to InvestingPro analysis, Cognex is currently trading near its Fair Value, with a financial health score rated as "FAIR." InvestingPro also highlights that the stock’s price movements are quite volatile, with a beta of 1.5. Discover more insights and 10+ additional ProTips in the comprehensive Pro Research Report available for Cognex and 1,400+ other US equities.
In other recent news, Cognex Corporation reported impressive earnings for the third quarter of 2025, outperforming analyst predictions. The company achieved an adjusted earnings per share (EPS) of $0.33, which was higher than the expected $0.29. Additionally, Cognex’s revenue reached $277 million, surpassing the anticipated $261.79 million. Despite these positive financial results, the company’s stock experienced a decline in early trading. Analysts had forecasted these earnings, and the results were a 13.79% surprise above expectations. These developments are part of the latest updates regarding Cognex Corporation.
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