Loading...
Loading...
DA Davidson downgraded Cadence Design Systems
CDNS from Buy to Neutral and lowered the price target from $17.00 to $15.00.
DA Davidson noted, "CDNS has entered a definitive agreement to acquire Tensilica, a leading provider of dataplane processing IP, for $350 million, net of $30 million cash. … CDNS has ~$830 million in cash (net cash of $380 million) with roughly 50% held onshore. Last year the company posted an impressive $316 million in operating cash flow; the acquisition price substantially exceeds this level and will leave CDNS in a neutral net cash position. More importantly, this diminishes the likelihood of CDNS initiating a dividend or meaningful stock repurchase program this year (could buy 9% of outstanding), thus removing a potential stock catalyst."
Cadence Design Systems closed at $14.58 on Monday.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
We simplify the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in