Cognex (CGNX) shares are trading lower this morning after Piper Jaffray analyst Auguste Richard cut his rating on the stock to Neutral from Overweight.
“Cognex’s shares have had a strong run on the backs of a number of recent catalysts,” Richard writes in a research note. “The company reported a strong Q2, positively pre-announced Q3 last week, and held an upbeat analyst meeting highlighting its new product initiatives last week. While there is likely an upward bias to the company’s revenue estimates, there is also likely an upward bias to the company’s SG&A spending as it expands into a broad array of markets and geographies. As a result, we do not see significant
upside to our estimates … We are moving to the sidelines based on valuation.”
CGNX is down 83 cents, or 3.1%, to $26.39.