EU and US could reach trade deal this weekend - Reuters
Cadence Design Systems, Inc. (NASDAQ:CDNS) stock has experienced a notable downturn, touching a 52-week low of $231.45. According to InvestingPro data, technical indicators suggest the stock is in oversold territory, while the company maintains impressive gross profit margins of 86%. This recent price level reflects a significant retreat from better-performing times for the company, which specializes in electronic design automation software and engineering services. Over the past year, Cadence Design has seen its stock value decrease by 25.31%, despite maintaining strong financial health with a current ratio of 2.93 and moderate debt levels. InvestingPro analysis reveals 18 additional key insights about CDNS’s valuation and future prospects, available in the comprehensive Pro Research Report. This decline comes amidst a broader market context that has seen technology stocks facing headwinds due to various economic pressures. Despite market challenges, the company maintains robust revenue growth of 13.5% and analysts remain optimistic about future profitability.
In other recent news, Silvaco Group, Inc. announced the acquisition of Cadence’s Process Proximity Compensation product line, aiming to enhance its capabilities in computational lithography and electronic design automation. This acquisition is expected to improve Silvaco’s market position in semiconductor manufacturing and support its AI-based computational platform. Silvaco reported a record year in 2024 for bookings and revenue, driven by demand for its digital twin modeling platform and semiconductor markets. Meanwhile, Cadence Design Systems, Inc. has received various updates from analysts regarding its financial outlook. Piper Sandler raised Cadence’s price target to $328, highlighting an 11.6% revenue growth forecast for 2025, slightly below consensus estimates.
KeyBanc Capital Markets maintained an Overweight rating on Cadence with a $355 target, noting a record $6.8 billion backlog in the fourth quarter. They suggested that Cadence might exceed its conservative 2025 revenue growth guidance. Loop Capital adjusted Cadence’s price target to $340 from $360, maintaining a Buy rating despite a lower-than-expected 2025 revenue forecast. Rosenblatt increased Cadence’s target to $295, keeping a Neutral rating, after Cadence reported a 27% year-over-year revenue increase in the fourth quarter. This growth was driven by strong verification hardware cycles and expansion in the Systems business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.