Analyst Expectations For Cadence Design Sys's Future

In the latest quarter, 7 analysts provided ratings for Cadence Design Sys CDNS, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved 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 $297.29, with a high estimate of $338.00 and a low estimate of $225.00. Experiencing a 3.41% decline, the current average is now lower than the previous average price target of $307.80.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into 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: 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.

To gain a panoramic view of Cadence Design Sys's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Cadence Design Sys analyst ratings.

Delving into Cadence Design Sys's Background

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.

Cadence Design Sys's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Cadence Design Sys's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 8.61%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Cadence Design Sys's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 21.64% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Cadence Design Sys's ROE excels beyond industry benchmarks, reaching 5.86%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Cadence Design Sys's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.55% 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 0.32.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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