Cognex upgraded to Buy from Neutral at UBS

UBS upgraded Cognex to Buy from Neutral with a price target of $54, up from $42. The analyst sees an “increasingly unique opportunity to own high quality growth at a discount.” The machine vision market correction is nearing an end and secular drivers will support Cognex returning to double digit organic sales growth, but the stock is only pricing in mid-single-digits, the analyst tells investors in a research note. Moreover, the firm sees robust operating leverage driving a 33% annual earnings growth through 2026.