Deep Dive Into Cadence Design Sys Stock: Analyst Perspectives (5 Ratings)

Cadence Design Sys CDNS underwent analysis by 5 analysts in the last quarter, revealing a spectrum of viewpoints 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 have recently evaluated Cadence Design Sys and provided 12-month price targets. The average target is $340.6, accompanied by a high estimate of $350.00 and a low estimate of $325.00. Surpassing the previous average price target of $322.67, the current average has increased by 5.56%.

Exploring Analyst Ratings: An In-Depth Overview

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 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cadence Design Sys compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Cadence Design Sys's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Cadence Design Sys's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Cadence Design Sys analyst ratings.

All You Need to Know 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 and aids in 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.

Understanding the Numbers: Cadence Design Sys's Finances

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Cadence Design Sys's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 18.81%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher 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 19.59%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Cadence Design Sys's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.4% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Cadence Design Sys's ROA stands out, surpassing industry averages. With an impressive ROA of 2.91%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Cadence Design Sys's debt-to-equity ratio stands notably higher than the industry average, reaching 0.62. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

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.