Loop Capital analyst Gary Mobley lowered the firm’s price target on Cadence Design (CDNS) to $340 from $360 after its Q4 results and below-consensus FY25 guide but keeps a Buy rating on the shares. The company’s record backlog was driven by about $2.6B in bookings, which was driven by both strong hardware verification revenue as well as fresh license renewals with customers like NVIDIA (NVDA), the analyst tells investors in a research note. China is the main growth headwind however, and macro-related issues in China, which are impacting chip design activity, is part of the reason why China is now dilutive to overall revenue growth, the firm adds.
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