CompetitionNear-term risks, including reliance on large logistics customers and intensifying competition from China, limit conviction for multiple expansion at the current valuation.
Market ChallengesThere are still more fundamental hurdles longer term that need to be considered - things like rising competition, AI making PC-based vision a more viable alternative, overall market penetration at the high end of the market.
Valuation ConcernsCognex 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.