Analyst Ratings For Cadence Design Sys

During the last three months, 11 analysts shared their evaluations of Cadence Design Sys CDNS, revealing diverse outlooks from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $322.36, a high estimate of $350.00, and a low estimate of $280.00. Surpassing the previous average price target of $313.83, the current average has increased by 2.72%.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Cadence Design Sys among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cadence Design Sys. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cadence Design Sys compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Cadence Design Sys's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Cadence Design Sys's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Cadence Design Sys analyst ratings.

Unveiling the Story Behind 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.

Unraveling the Financial Story of Cadence Design Sys

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Cadence Design Sys's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -1.23%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 24.54%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Cadence Design Sys's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.1%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Cadence Design Sys's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.35%, the company showcases efficient use of assets and strong financial health.

Debt Management: Cadence Design Sys's debt-to-equity ratio is below the industry average at 0.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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