Cognex shares shed 2%; Cowen downgrades as income decline seemingly

Cognex (NASDAQ:CGNX) shares gave up 2% Tuesday after Cowen analyst Joseph Giordino lower his score on the manufacturing automation expertise firm on expectations that income will decline subsequent yr.

Giordino took down his score on Cognex (CGNX) to market carry out, or impartial, from outperform, and trimmed his value goal on the inventory to $50 a share from $55. Giordino stated that “natural development” will seemingly be tough for Cognex (CGNX) to attain subsequent yr, as the corporate faces challenges in its two primary enterprise strains, logistics and shopper electronics.

For Cognex’s (CGNX) logistics enterprise, Giordino estimates gross sales will drop 15% yr from 2021, and one other 17.5% on a year-over-year foundation in 2023. Giordino stated the decline is probably going being led by Amazon (AMZN), Cognex’s (CGNX) largest buyer, slicing its enterprise dealings with the corporate.

Close to shopper electronics, Giordino stated Cognex (CGNX) expects low double-digit gross sales development this yr, attributable to what he stated is predicted to be “barely increased unit manufacturing at Apple” and producers shifting a few of their manufacturing from China to different areas.

Wall Road analysts have a consensus purchase score on Cognex’s (CGNX) inventory, whereas In search of Alpha authors give the inventory a score of maintain. In search of Alpha’s quant system, which generally outperforms the inventory market, agree with In search of Alpha’s authors and views Cognex (CGNX) shares are worthy of a maintain score.