Needham & Company Raises Price Target on Cognex Corp (CGNX) to $61 Following Solid 3Q

Needham & Company reiterated a Buy rating on Cognex Corp (NASDAQ: CGNX), and raised the price target to $61.00 (from $55.00), following the company's 3Q earnings report. Revenues increased 38% to $148M, above the high end of guidance of $142-147M. The consensus revenue forecast was $145.8M. The beat was driven by strong shipments into the consumer electronics market. EPS increased to $0.54, solidly above guidance of $0.48.

Analyst James Ricchiuti commented, "CGNX after the close yesterday delivered a stronger-than-expected Q3 report, with revenues up 38% y/y, above the high end of guidance, while EPS came in 13% above Street expectations even after backing out a discrete tax benefit. Management, as expected, guided to sequentially down Q4 revenues, reflecting normal seasonal weakness in the consumer electronics market, though up 18-21% y/ y and solidly above consensus. CGNX also announced the acquisition of two small 3D machine vision companies, consistent with mgmt’s increased focus on the emerging 3D machine vision market. We came away from the Q3 report and recent investor day more optimistic about upside potential to numbers for next year. We maintain our Buy given the underlying growth potential that we see for the business and new growth initiatives CGNX is targeting."

For an analyst ratings summary and ratings history on Cognex click here. For more ratings news on Cognex click here.

Shares of Cognex closed at $51.60 yesterday.

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