Trump announces trade deal with EU following months of negotiations
Wednesday, Loop Capital analysts adjusted their view on Cadence Designs (NASDAQ:CDNS) stock, reducing the price target to $340 from $360, but still affirming a Buy rating on the shares. Gary Mobley from Loop Capital noted that despite a better-than-expected finish to the fiscal year 2024, the forecast for fiscal year 2025 came in below consensus expectations, prompting the revision of the price target. According to InvestingPro data, CDNS currently trades at $300.43, with analyst targets ranging from $225 to $355. The company appears overvalued based on InvestingPro’s Fair Value analysis.
Mobley’s analysis acknowledged the disappointment in the fiscal year 2025 revenue guidance, which was not significantly different from competitor Synopsys’ (NASDAQ:SNPS) initial guidance for the same period. Despite this, Loop Capital chose to maintain the Buy rating on Cadence Designs stock, anticipating an 18% upside from its after-hours trading level.
A standout in the report was Cadence Designs’ strong performance in the fourth quarter of fiscal year 2024. The company secured approximately $2.6 billion in bookings during this period, which is more than double the typical quarterly bookings. This achievement was highlighted as a clear positive amid the otherwise mixed financial outlook. InvestingPro analysis reveals 13 additional key insights about CDNS’s financial health, which has received a "GOOD" overall rating from the platform’s comprehensive scoring system.
Cadence Designs has not publicly commented on the revised price target or the maintained Buy rating at this time. The company’s stock performance in the upcoming trading sessions will likely reflect investor reaction to these updated analyst views.
Investors and market watchers will be keeping a close eye on Cadence Designs as it navigates the fiscal year ahead, with particular attention to how the company’s financial results align with the revised projections from Loop Capital.
In other recent news, Cadence Design Systems reported strong financial results for the fourth quarter of 2024, surpassing analyst expectations with an earnings per share (EPS) of $1.88, compared to the forecast of $1.82. The company also exceeded revenue projections, reporting $1.356 billion against an anticipated $1.35 billion, marking a 13.5% revenue growth for the full year. Analysts at Rosenblatt responded by raising Cadence’s stock price target to $295, maintaining a Neutral rating. This adjustment came after Cadence’s revenue growth, driven by a strong verification hardware cycle and expansion in the Systems business, exceeded both Rosenblatt’s and consensus estimates. In January, Cadence announced its acquisition of Secure-IC, aimed at enhancing its portfolio with an embedded security IP platform for various markets. Despite the positive performance, Cadence’s forecast has been slightly reduced due to expected weakness in the Chinese market, which is projected to remain flat in 2025. The company’s backlog at the end of the fourth quarter was reported at $6.8 billion, up from $5.6 billion in the previous quarter, providing strong visibility into 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.