A Closer Look at 6 Analyst Recommendations For Cadence Design Sys

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on Cadence Design Sys CDNS in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 $291.33, with a high estimate of $325.00 and a low estimate of $225.00. This current average has decreased by 0.46% from the previous average price target of $292.67.

Investigating Analyst Ratings: An Elaborate Study

The standing of Cadence Design Sys among financial experts becomes clear with a thorough analysis 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 frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cadence Design Sys. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Cadence Design Sys compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Cadence Design Sys's stock. This comparison reveals trends 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.

Get to Know Cadence Design Sys Better

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: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Cadence Design Sys displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 8.61%. This indicates a notable 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 excels beyond industry benchmarks, reaching 21.64%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.86%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.55%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.32, Cadence Design Sys adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of 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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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