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Piper Jaffray Initiates Coverage on Cognex (CGNX) with a Buy, Sees Revenue Growth Over Next Several Years

Cognex Corporation

December 18, 2008 -- Piper Jaffray & Co. initiates coverage on Cognex Corp. (Nasdaq: CGNX) with a Buy. Price target $17.

Piper analyst says, "We believe that the shares are under-followed, under-appreciated, and under-valued and that the machine vision market is under-penetrated. Valuation is compelling as the stock is trading at 2.3x cash, has no debt, provides a 4.6% dividend yield and has a profitable business model. We believe that as the global economy starts to stabilize, manufacturers will re-focus on growth and cost-saving initiatives. We believe one of the areas of investment will be machine vision as these systems drive productivity while improving quality and reliability in manufacturing. New products, an expanding sales force in Asia, and a new relationship with Mitsubishi will help drive revenue growth over the next several years."

Cognex Corporation designs, develops, manufactures and markets machine vision systems, or computers that can see, which are used to automate a range of manufacturing processes where vision is required.

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