Why Needham Says This Semiconductor Stock Will Catch Up With Synopsys


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


Cadence Design Systems Inc (NASDAQ:CDNS) is “a rare software play” in the semiconductor industry and is poised to benefit from accelerated growth in the Electronic Design Automation (EDA)/Internet Protocol industry, according to Needham.

The Cadence Design Systems Analyst: Charles Shi initiated coverage of Cadence Design Systems with a Buy rating and $183 price target.

The Cadence Design Systems Takeaways: Following a downturn since September, the share price represents an entry point ahead of the company’s third-quarter earnings call, Shi said in the initiation note.

The analyst said he expects EDA to outperform the semiconductor industry, with around 10%  growth over the next few years. Following the current market leader Synopsys, Inc. (NASDAQ:SNPS), Cadence Design Systems is likely to “publicly commit to ~10% EDA growth on either its 3Q21 or 4Q21 earnings call,” he said. 

“We believe Cadence will execute and outperform in coming years,” Shi further wrote.

CDNS Price Action: Shares of Cadence Design Systems were trading 1.46% higher at $161.15 midday Wednesday. 


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


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Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsCharles ShiNeedham