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Investing.com - DA Davidson raised its price target on Cognex (NASDAQ:CGNX) to $35.00 from $32.00 on Monday, while maintaining a Neutral rating on the machine vision systems manufacturer. The company, currently valued at $6.91 billion, has seen its stock surge nearly 17% in the past week, according to InvestingPro data.
The research firm increased its sales and earnings per share projections for Cognex for both 2025 and 2026, suggesting the current downcycle in demand may have reached its bottom, though it remains uncertain whether the company is positioned for a sustained inflection. This optimism aligns with 10 analysts recently revising their earnings estimates upward, as reported by InvestingPro.
DA Davidson noted that Cognex’s second-quarter 2025 results exceeded expectations, and its guidance for the third quarter of 2025 was encouraging, particularly regarding expense optimization and free cash flow generation. The company maintains a healthy financial position with a current ratio of 3.29 and has achieved 10.14% revenue growth over the last twelve months.
The firm highlighted that Cognex is seeing strong performance in its Logistics, Packaging (NYSE:PKG), and Consumer Electronics segments, which is being offset by weakness in the Semiconductor and Automotive sectors, along with unfavorable product mix.
Despite the price target increase, DA Davidson maintained its Neutral rating on Cognex stock, reflecting continued uncertainty about the company’s growth trajectory amid mixed end-market conditions.
In other recent news, Cognex Corporation reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.25, surpassing the $0.24 estimate. The company also reported revenue of $249 million, above the consensus estimate of $246.13 million, marking a 4% year-over-year increase. Cognex’s strong performance was driven by growth in Logistics and Factory Automation, especially in Consumer Electronics and Packaging. Following these results, KeyBanc upgraded Cognex’s stock rating from Sector Weight to Overweight, setting a price target of $50.00. Needham also raised its price target for Cognex to $45.00 from $36.00, maintaining a Buy rating and noting the company’s positive outlook in several markets. UBS reiterated its Buy rating with a $53.00 price target, emphasizing Cognex’s effective cost containment efforts, which led to a notable adjusted EBITDA margin of 20.7% in the second quarter. The company’s updated guidance for the third quarter also impressed, suggesting a strong outlook for the coming months.
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