Cognex Corporation (NASDAQ:CGNX) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. Citi has increased its price target on Cognex Corporation (NASDAQ:CGNX) to $37 from $30 while maintaining a Neutral rating, citing cautious optimism heading into the second-quarter earnings season for industrial conglomerates.

A worker utilizing a vision sensor to verify discrete items.

In a note to clients, the firm stated that most companies in the sector are likely to post steady results, with modest upward revisions to their 2025 earnings guidance. Cognex, known for its machine vision systems, is expected to benefit from stabilizing demand trends and improving order visibility in the second half of the year. While Citi stopped short of a bullish upgrade, analysts acknowledged that Cognex is better positioned than it was earlier in the cycle, following several quarters of subdued performance. Demand in key verticals, including electronics, automotive, and logistics, has shown signs of gradual recovery.

Cognex has made strategic investments in high-performance image processing and 3D vision technologies, which are increasingly critical in modern manufacturing environments. These capabilities support quality control and precision automation, areas that continue to gain traction globally amid labor constraints and digital transformation initiatives. The revised price target reflects Citi’s view that near-term headwinds are softening and that Cognex could see a more constructive environment going into 2025.

Cognex powers industrial automation through advanced machine vision and barcode reading systems used in precision manufacturing, logistics, and quality control.

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READ NEXT: 10 Best Non-Mega Cap NASDAQ Stocks to Buy Right Now and 13 Cheap Stocks Under $50 to Buy Now. Disclosure: None. This article is originally published at Insider Monkey.