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.
Price: 40.75, Change: +6.99, Percent Change: +20.70
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.