Cognex shares rise on boost in 3rd-quarter revenue guidance, stock hits 52-week peak

Cognex shares rise on improved revenue guidance

NEW YORK — Shares of Cognex Corp. rose Tuesday after the maker of machine vision sensors and systems raised its revenue guidance.

THE SPARK: On Monday, the company said it expects a record third quarter on strong demand. The company now expects revenue between $74 million and $76 million, up from its guidance Aug. 2, for revenue between $65 million and $68 million.

THE BIG PICTURE: The Natick, Mass., company said that stronger-than-anticipated demand is due to the factory automation market. That market represented 69 percent of the company’s business in the second quarter.

THE ANALYSIS: Piper Jaffray analyst Auguste Gus Richard boosted his price target to $30 from $28 and reaffirmed an “Overweight” rating on the stock, citing demand from the industrial sector.

SHARE ACTION: Up $2.35, or 10 percent, to $25.24. The stock reached a 52-week high of $25.50 at one point.