Evaluating Cadence Design Sys: Insights From 10 Financial Analysts

Ratings for Cadence Design Sys (NASDAQ:CDNS) were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Cadence Design Sys, revealing an average target of $324.6, a high estimate of $350.00, and a low estimate of $280.00. Surpassing the previous average price target of $294.25, the current average has increased by 10.31%.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Cadence Design Sys's perception among financial experts is painted 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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cadence Design Sys. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cadence Design Sys compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Cadence Design Sys's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Cadence Design Sys's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.

Financial Insights: Cadence Design Sys

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, Cadence Design Sys showcased positive performance, achieving a revenue growth rate of 18.75% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 30.31%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 9.94%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Cadence Design Sys's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.84% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Cadence Design Sys's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.22.

Analyst Ratings: What Are They?

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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