As of July 21, 2023, Cadence Design Systems (NASDAQ:CDNS) has received a Buy rating from Rosenblatt analyst Blair Abernethy. The price target for the company has been increased from $215 to $250. Currently, the price per share of Cadence Design Systems, Inc. stands at approximately $244.09.
A group of 14 analysts have provided their 12-month price forecasts for Cadence Design Systems Inc, with a median target of $249.00. The highest estimate for the target price is also $249.00. On average, the price target is $237.56.
Cadence Design Systems, Inc. operates on a global scale, offering software, hardware, services, and reusable integrated circuit (IC) design blocks.
Cadence Design Systems, Inc.
CDNS
Strong Buy
Updated on: 07/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
CDNS (Cadence Design Systems) Stock Analysis: Strong Earnings Growth and High Valuation
CDNS (Cadence Design Systems) is a technology services company specializing in packaged software for electronic systems and integrated circuits. On July 21, 2023, CDNS stock had a previous close of $238.78 and opened at $241.25. Throughout the day, the stock traded in a range of $240.85 to $244.21. The volume for the day was 56,737 shares, significantly lower than the average volume of 1,941,108 shares over the past three months. CDNS has a market cap of $65.6 billion.
CDNS has shown strong earnings growth over the past year, with a growth rate of 23.02%. The positive trend is expected to continue, with earnings growth projected at 17.77% for this year and 16.00% for the next five years. The company has also experienced revenue growth of 19.19% in the past year.
The P/E ratio for CDNS is 77.7, indicating that the stock may be relatively expensive compared to its earnings. The price/sales ratio is 12.40, suggesting that investors are willing to pay a premium for each dollar of CDNS’s sales. The price/book ratio is 23.91, indicating that the stock is trading at a higher valuation compared to its book value.
In terms of stock performance on July 21, 2023, CDNS had a positive change of $3.98, representing a percentage change of 0.88%. CDNS outperformed some of its competitors in the technology services sector, with Fortinet Inc (FTNT) experiencing a change of $0.83 (+1.07%), Workday Inc (WDAY) experiencing a change of $3.15 (+1.42%), and VMware (VMW) experiencing a change of -$2.66 (-1.62%).
CDNS is scheduled to release its next earnings report on July 25, 2023, with analysts forecasting an EPS of $1.18 for this quarter. In the previous fiscal year, CDNS reported annual revenue of $3.6 billion and a profit of $849.0 million, resulting in a net profit margin of 23.84%.
CDNS is part of the technology services sector and operates in the packaged software industry. The company is headquartered in San Jose, California.
Overall, CDNS has shown strong financial performance with consistent earnings and revenue growth. However, the stock is trading at a relatively high valuation compared to its earnings and book value. Investors should consider these factors when evaluating CDNS as a potential investment.
CDNS Stock Forecast: Analysts Optimistic with Median Target of $249.00
CDNS, the stock ticker symbol for Cadence Design Systems Inc, has been performing well in recent months. According to data from CNN Money, the 12-month price forecasts from 14 analysts have a median target of $249.00, with a high estimate of $300.00 and a low estimate of $210.00. This indicates that the analysts are generally optimistic about the future performance of CDNS stock.
The median estimate of $249.00 represents a 2.40% increase from the last price of $243.17. This suggests that the stock has room for growth in the coming months. Additionally, the current consensus among 17 polled investment analysts is to buy stock in Cadence Design Systems Inc. This rating has remained steady since July, indicating a consistent positive sentiment towards the stock.
CDNS has reported strong numbers for the current quarter. The company has recorded earnings per share of $1.18 and sales of $976.0 million. These figures indicate a solid performance and suggest that the company is on track to meet or exceed market expectations.
Investors will be eagerly awaiting the reporting date of July 25 to get a more detailed picture of CDNS’s financial performance for the quarter. If the company can deliver strong results, it is likely to further boost investor confidence and potentially drive the stock price higher.
Overall, CDNS stock has been performing well and has garnered positive sentiment from analysts. With a median price target of $249.00 and a consensus buy rating, the stock is expected to continue its upward trajectory. Investors should keep an eye on the upcoming earnings report on July 25 for further insights into the company’s financial performance.
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