JPMorgan analyst Paul Chung upgraded Cognex Corp to Neutral from Underweight with a price target of $68, down from $80, post the Q4 beat. The price target implies an upside of 10.3 percent.
Cognex’s Q4 FY21 revenue of $244.1 million beat the consensus of $222.96 million. EPS of $0.30 beat the consensus of $0.22.
Cognex sees Q1 FY22 revenue of $265 million–$285 million, above the consensus of $249.9 million.
The valuation multiple on enterprise value to EBITDA basis has come down 13 turns since the company posted Q3 results, creating a more balanced risk/reward, Chung notes.
However, he believes Cognex’s visibility remains limited “in this mostly book and ship business, making it extremely difficult to model longer-term estimates.”
By Anusuya Lahiri
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