This summary was created by AI, based on 4 opinions in the last 12 months.
Cadence Design Systems (CDNS-Q) is a prominent player in the semiconductor software industry, recently facing a dip of 14% in its stock price despite reporting solid quarterly results. Concerns regarding growth in AI data centers have added to investor caution, placing the stock near its 52-week low, potentially making it an attractive buy on weakness. Analysts remain optimistic about the company's long-term prospects, with a 12-month price target of $332, reflecting confidence in its performance supporting companies like NVIDIA and AMD. Although the price-to-earnings ratio appears high, the company has consistently beat earnings expectations and raised guidance slightly; indicating strong financial health. Overall, while some experts advise trimming their positions for profit-taking, the consensus favors a long-term holding strategy.
A competitor to SNPS. Software that helps the likes of NVDA and AMD design their chips. 12-month price target of $332. Extremely well known in Europe. A number of joint ventures. Financials have been great, consistently beat on top and bottom. Raised guidance a tiny bit. Buy in thirds here around $270, $260s, and just under $250. No dividend.
(Analysts’ price target is $314.43)They produce software that helps semis companies design their chips used and to help design advanced automotive and new drugs. Their platform helps makes the most-advanced chips in AI. Is up 43% in the past year. They reported a mixed quarter in April; shares dipped but have hung in. A great company.
CDNS has a strong track record of execution and is now trading at 44x times' Forward P/E (historical averages in the last five years ranging from 27x – 46x). Revenue and EBITDA have been consistently growing at around 13% and 20%, respectively. The balance sheet is solid, with net cash of around $200M. The company is generating tons of cash and returns most of it through repurchases, which we like. The Q1 was mixed, but it raised guidance, underlining the belief that the company benefits from secular trends fueling demand for its software and other tools used to design semiconductors. This is despite weaker end-market demand for some chips and tightened US export laws aimed at China. Trends are sparking more, and more complicated, chip designs that are critical to customers' R&D initiatives. Operating margin fell in 1Q vs. the prior year on a tough comparison, yet it should rise for the year on more revenue and Cadence's strong competitive position. Upfront sales (20% of total in 1Q), such as hardware and some IP products, can create lumpiness in revenue. Overall, we like the name, momentum looks good, and the company has a track record of consistent growth and shareholder-friendly policies over the last few years. Having said that, it is rarely trading cheaply given, CDNS’s valuation is at a premium level compared to peers and the market most of the time, which already reflects the high quality of the business. We would be nibble here and there and averge into the position over time.
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Cadence Design Systems is a American stock, trading under the symbol CDNS-Q on the NASDAQ (CDNS). It is usually referred to as NASDAQ:CDNS or CDNS-Q
In the last year, 3 stock analysts published opinions about CDNS-Q. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cadence Design Systems.
Cadence Design Systems was recommended as a Top Pick by on . Read the latest stock experts ratings for Cadence Design Systems.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Cadence Design Systems In the last year. It is a trending stock that is worth watching.
On 2025-04-02, Cadence Design Systems (CDNS-Q) stock closed at a price of $264.94.
Is -14% after they reported a solid quarter with conservative guidance, as more concerns for AI data centres emerged. Near its 52-week low, so maybe it's a buy on weakness.