- Keyence is seeing some signs of recovery, particularly in China, but key industrial markets like autos and machine tools are still seeing significant pressure.
- Keyence is well-placed to benefit from reshoring, IIOT adoption, and an overall trend toward more automation and industrial technology adoption with strong positions in vision, sensing, and control.
- Keyence is a "black box" for retail investors, with minimal disclosure and communication from management, and it's fair to question whether strong market share is sustainable on low R&D spending.
- These shares have long traded at a premium to other industrial technology companies; while the company's strong execution and growth potential merit some premium, this is a momentum/story stock, not a GARP idea.
For further details see:
Keyence Riding High As Automation Demand Is Set To Improve