Analysts have raised their price target for Cognex to $47.21, citing improving end-market demand, stronger than expected operating leverage, and sector-wide optimism on earnings growth.
Analyst Commentary
- Improving demand across most of Cognex's end markets is expected to drive a return to more normalized upcycle operating leverage into 2026.
- Bullish analysts anticipate out-year EBITDA margins in the low- to mid-20% range, exceeding management's previously introduced 20% 2026 target.
- Some analysts expect the broader industrial conglomerate sector to post solid Q2 results and to slightly increase 2025 earnings outlooks, providing a sector-wide tailwind for Cognex.
- Multiple bullish upgrades and raised price targets reflect increased optimism toward medium-term earnings growth and operating leverage.
- Upgrades to buy/overweight status accompanied by higher price targets suggest confidence in Cognex's execution and end-market recovery trajectory.
What's in the News
- Cognex completed a share buyback program, repurchasing 8,169,000 shares (4.76%) for $336.44 million, with no shares repurchased in the most recent tranche.
- Issued third-quarter 2025 revenue guidance of $245 to $265 million, or $253 to $279 million if including a one-time benefit from a commercial partnership.
- Cognex was dropped from multiple Russell growth indexes, including the Russell 1000, 2500, 3000, Midcap, and Small Cap Growth benchmarks and indexes.
Valuation Changes
Summary of Valuation Changes for Cognex
- The Consensus Analyst Price Target has risen slightly from $46.17 to $47.21.
- The Net Profit Margin for Cognex has risen from 19.40% to 21.14%.
- The Future P/E for Cognex has fallen from 38.05x to 35.45x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.