UPDATE: Pacific Crest Securities Reiterates Outperform Rating, Raises PT on Cadence Design Systems Following Slight Beat

In a report published Tuesday, Pacific Crest Securities analyst Monika Garg reiterated an Outperform rating on Cadence Design Systems CDNS, and raised the price target from $18.00 to $20.00. In the report, Pacific Crest Securities noted, “Cadence posted a slight EPS and revenue beat. The company provided very strong commentary on demand trends in the EDA industry. The company raised its 2014 revenue guidance slightly but lowered EPS guidance by $0.03 at the midpoint due to lower hardware gross margin (its emulation tool is in its fifth year now) and due to slightly higher diluted share count from the impact of the higher share price on the 2015 outstanding convertible. The company announced a $300 million (about 6% of the market cap) buyback over the next two years and plans to buy back stock linearly across the next eight quarters.” Cadence Design Systems closed on Monday at $!7.50.