From Financial Modeling Prep: 2025-02-18 11:33:00

TD Cowen analysts lowered their price target on Cognex (NASDAQ:CGNX) to $30 from $38, maintaining a Hold rating due to structural changes and market dynamics. They highlighted the need for a shift in Cognex’s business model and the importance of reassessing valuation frameworks for sustainable shareholder returns. Despite challenges, renewed investor confidence may be on the horizon.

Logistics is seen as a promising growth driver for Cognex, but concerns remain for consumer electronics and automotive segments, which make up 40% of revenue. Consumer electronics relies on breakthrough materials, while automotive faces weaker capital expenditures through 2026. This makes the automotive sector less appealing in the near future.

TD Cowen views Cognex’s upcoming Investor Day in June as a critical event for insights into the company’s strategic direction. Their updated price target is based on a 30x estimated fiscal 2026 earnings per share, which they still consider relatively high despite recent declines in the stock price.



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