Cadence Design initiated with a Buy at Citi

Citi initiated coverage of Cadence Design (CDNS) with a Buy rating and $385 price target The firm believes the electronic design automation market is “emerging as the backbone” of the next growth phase of artificial intelligence. The sector is brining intelligence from software to the physical world, which should drive double-digit revenue growth with 40% operating margins, the analyst tells investors in a research note. Citi sees a favorable fundamental setup for Cadence.