Demystifying Cadence Design Sys: Insights From 12 Analyst Reviews

Cadence Design Sys CDNS underwent analysis by 12 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Cadence Design Sys and provided 12-month price targets. The average target is $327.58, accompanied by a high estimate of $355.00 and a low estimate of $280.00. This upward trend is apparent, with the current average reflecting a 2.27% increase from the previous average price target of $320.30.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Cadence Design Sys. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cadence Design Sys. This insight gives a snapshot of analysts' perspectives on 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: Delving into movements, analysts provide estimates for the future value of Cadence Design Sys's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Cadence Design Sys's market standing. Stay informed and make well-considered 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.

Unraveling the Financial Story of Cadence Design Sys

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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 competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Cadence Design Sys's net margin is impressive, surpassing industry averages. With a net margin of 24.54%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Cadence Design Sys's ROE excels beyond industry benchmarks, reaching 7.1%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Cadence Design Sys's ROA excels beyond industry benchmarks, reaching 4.35%. This signifies efficient management of assets and strong financial health.

Debt Management: Cadence Design Sys's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.18.

What Are Analyst Ratings?

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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