Raymond James reiterates Strong Buy rating on Cognex stock, removes from favorites list

Investing.com - Raymond James has reiterated its Strong Buy rating and $50.00 price target on Cognex (NASDAQ:CGNX), while removing the machine vision company from its Analyst Current Favorites list. Currently trading at $46.54, Cognex has shown impressive momentum with a 51% surge over the past six months, according to InvestingPro data.

The removal follows approximately 50% appreciation in Cognex stock since early April, according to Raymond James analyst Brian Gesuale.

Despite the removal from the favorites list, Raymond James maintains its positive outlook on the company, noting Cognex has "strong" leverage to stability and recovery in its markets.

The firm highlighted management’s "clear focus on core markets and accelerants" including new markets, products, and initiatives, which gives their model "an upward bias."

Raymond James believes there remains "meaningful upside" for Cognex stock as the market recognizes the prospects of demand recovery combined with what the firm describes as a "cleaner, leaner, and more focused model."

In other recent news, Cognex Corporation reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.25 compared to the estimate of $0.24. The company’s revenue reached $249 million, surpassing the consensus estimate of $246.13 million and marking a 4% year-over-year increase. Following these results, KeyBanc upgraded Cognex’s stock rating to Overweight, setting a price target of $50.00, citing a strong outlook and impressive third-quarter guidance. Needham also raised its price target to $45.00, maintaining a Buy rating, and highlighted the company’s positive performance in several markets, including logistics and consumer electronics.

UBS reiterated its Buy rating with a $53.00 price target, emphasizing Cognex’s improved cost containment efforts, which led to an adjusted EBITDA margin of 20.7% in the second quarter. DA Davidson raised its price target to $35.00, maintaining a Neutral rating, and adjusted its sales and earnings projections for 2025 and 2026, suggesting a potential bottoming of the demand cycle. These developments reflect a series of positive reactions from analysts following Cognex’s second-quarter performance and outlook.

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