Cognex initiated with an Underperform at Credit Suisse

Credit Suisse analyst Guy Hardwick initiated coverage of Cognex with an Underperform rating and $41 price target. He expects Cognex’s "sector-leading R&D expenditure," including investment in AI, 3D and Deep Learning, should support about 30% operating profit margins, but the firm’s FY23 estimates are below consensus given a slower-than-expected recovery in Cognex’s largest end market, Logistics, due to pullback in investment by its largest customer and other leading e-commerce companies, Hardwick tells investors.