Customer Concentration And CompetitionNear-term risks, including reliance on large logistics customers and intensifying competition from China, limit conviction for multiple expansion at the current valuation.
Growth Expectations And Investor SentimentManagement suggested the macro dynamics behind the MSD growth in 2025 may persist in 2026, which spooked investors.
Market Valuation And CompetitionCognex trades at a premium to U.S. industrial technology peers, with a valuation that already embeds a measure of AI-driven optimism, presenting ongoing headwinds.