Cadence Design Sys Stock: A Deep Dive Into Analyst Perspectives (8 Ratings)

Across the recent three months, 8 analysts have shared their insights on Cadence Design Sys CDNS, expressing a variety of opinions spanning from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $324.0, with a high estimate of $350.00 and a low estimate of $280.00. Observing a 10.11% increase, the current average has risen from the previous average price target of $294.25.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Cadence Design Sys by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cadence Design Sys. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cadence Design Sys compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cadence Design Sys's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cadence Design Sys's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Cadence Design Sys analyst ratings.

About Cadence Design Sys

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.

Breaking Down Cadence Design Sys's Financial Performance

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Cadence Design Sys displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 4.45%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Cadence Design Sys's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 30.31%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cadence Design Sys's ROE stands out, surpassing industry averages. With an impressive ROE of 9.94%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Cadence Design Sys's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.84% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Cadence Design Sys's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.19.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.