Charles Shi, an analyst from Needham, maintained the Buy rating on Cadence Design (CDNS – Research Report). The associated price target remains the same with $325.00.
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Charles Shi has given his Buy rating due to a combination of factors influencing Cadence Design’s future performance. Despite a forecasted slowdown in growth, Cadence Design is still expected to achieve double-digit revenue growth, with a 2025 guidance midpoint at 11.6%. This projection is comparable to its industry peer Synopsys, which has a similar growth outlook.
Furthermore, specific segments like IP and SD&A are anticipated to outperform the company’s average growth rate, showing potential for high-teens and mid-teens growth, respectively. Although the core EDA segment may underperform with high-single-digit growth, and the China market outlook remains flat, the overall business trajectory is positive. While growth deceleration is expected, particularly outside China, the overall market guidance still supports a Buy rating.
According to TipRanks, Shi is a 4-star analyst with an average return of 5.2% and a 44.97% success rate. Shi covers the Technology sector, focusing on stocks such as KLA, Applied Materials, and Camtek.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $350.00 price target.