Investors had a roughly six-week window of opportunity earlier this year to buy Cognex (CGNX)
at what I think is a good price relative to the company’s financial
prospects. Since then, the shares have not only participated in the
post-panic recovery, but also picked up some momentum as a reshoring
play. The company posting a stronger than expected first quarter and
management sounding fairly bullish on the company’s recovery prospects
after COVID-19 has only added to that momentum.
I’m
skeptical regarding the reshoring angle, but I am still very bullish
about the long-term prospects of Cognex and its machine vision
technology as an enabling technology for further automation of
factories, warehouses, and logistics chains. Valuation has moved back to
what is more typical for high-quality industrial companies, making this
more of a hold in my mind than a buy.
Read more here:
Cognex Already Trading On Recovery Prospects
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