Analysts at Berenberg Bank provided their views on Cognex Corporation (NASDAQ:CGNX), mentioning that the market is overlooking the long-term opportunity for the company given concerns about inflation and the impact of supply chain disruption on customer production plans.

Ironically, the analysts think the same issues weighing on the company are creating structural demand for machine vision as companies seek to curb rising costs, address labor shortages, and shorten supply chains. Most overlooked is the opportunity in automotive. While the near term will be choppy, the analysts expect strong multi-year growth driven by EV and battery production, where inspection is more critical. With logistics now 30% of sales, the analysts see secular trends in e-commerce dampening cyclicality and bridging growth into 2023.

The analysts maintained their buy rating and $101 price target.