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

Cognex (NASDAQ:CGNX) shares gave up 2% Tuesday after Cowen analyst Joseph Giordino minimize his score on the manufacturing automation know-how 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 worth goal on the inventory to $50 a share from $55. Giordino mentioned that “natural progress” will seemingly be tough for Cognex (CGNX) to attain subsequent yr, as the corporate faces challenges in its two important enterprise traces, logistics and client 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 mentioned the decline is probably going being led by Amazon (AMZN), Cognex’s (CGNX) largest buyer, reducing its enterprise dealings with the corporate.

Close to client electronics, Giordino mentioned Cognex (CGNX) expects low double-digit gross sales progress this yr, because of what he mentioned is anticipated to be “barely greater 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 Searching for Alpha authors give the inventory a score of maintain. Searching for Alpha’s quant system, which usually outperforms the inventory market, agree with Searching for Alpha’s authors and views Cognex (CGNX) shares are worthy of a maintain score.