Japanese industrial automation company Keyence has emerged as a standout player in the global tech industry, outshining its US counterparts. With a focus on manufacturing factory automation equipment, Keyence has gained recognition for its superior machine vision systems, which utilize cameras and advanced technology to automate inspections in manufacturing facilities.
Portfolio manager Karen Kharmandarian of Thematics Asset Management believes that Keyence surpasses its US competitors, such as Cognex and Zebra Technologies, in terms of technology and resilience. Despite the challenges posed by the COVID-19 pandemic, Keyence managed to secure critical components for product design, showing its impressive management capabilities. Kharmandarian commends the company for its attractive technology and diversified market presence.
Keyence’s success is reflected in its stock performance, with shares increasing by approximately 22% to 62,280 Japanese Yen ($418.95) as of November 20th, 2023. Jason Kondo, an equity analyst at Morningstar, attributes the company’s outperformance to its expertise in machine vision and sensors, enabling the provision of cost-effective solutions that address labor shortages and yield immediate savings.
Of the 18 analysts covering Keyence, 15 have either a buy or overweight rating on the stock. With an average price target of 74,676.50 Japanese Yen, according to FactSet data, there is potential for the shares to increase by around 20%.
Keyence’s innovative advancements and strong market position have positioned the company as a global tech gem. Its machine vision systems and automation solutions have found favor among investors and industry experts who see the company as a top competitor in the tech space. With its focus on delivering cutting-edge technology and ability to overcome challenges, Keyence continues to shine brightly in the ever-evolving world of automation.
