Cognex (CGNX) posted its highest adjusted earnings before interest, taxes, depreciation, and amortization margin in two years during Q2, and Q3 guidance topped Wall Street estimates, UBS Securities said Wednesday in a note.

The company's shares jumped 21% in recent Thursday trading.

The 20.7% adjusted EBITDA margin reflected disciplined cost containment, and Q3 revenue and profit guidance "firmly above" consensus estimates contrasted with the outlook in previous quarters that trailed expectations, UBS said.

Additional growth catalysts include a new medical lab automation partnership, possible tax benefits and improving demand trends, the note said.

UBS has a buy rating on Cognex stock with a price target of $53.

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