Cognex upgraded to Neutral from Underperform at Credit Suisse

Credit Suisse analyst Guy Hardwick upgraded Cognex to Neutral from Underperform with a price target of $44, up from $41. The company’s returns are normalizing, says the analyst, who sees sustainable returns in the low 30s over the medium-term. Given the recent stock price decline, Cognex is now discounting low 30s returns and is trading only 6% above the price target, the analyst tells investors in a research note. In addition, component headwinds are improving, and pressure on logistics/ Amazon revenues is broadly reflected in consensus estimates, contends the firm.