CDNS Stock Fair Value – Deutsche Bank Analyst Recommends ‘Buy’ for Both Short- and Long-Term Investment in Cadence Design Systems
February 2, 2023
Trending News ☀️
CDNS Stock Fair Value – Cadence Design Systems ($NASDAQ:CDNS), Inc. is a leading provider of software and system-on-a-chip technology for the design and verification of integrated circuits, systems, and semiconductor devices. With its expansive portfolio of products and services, the company provides customers with an end-to-end solution to design, verify, and implement complex designs. On Tuesday, Deutsche Bank analyst Gianmarco Conti gave Cadence Design Systems two buy ratings, one for the short-term and one for the long-term. The analyst stated that buying the company’s stock now as well as in the future would be a wise decision. He emphasized that the company’s performance has been strong in recent quarters, and that it is well-positioned for continued growth.
The stock market responded positively to Conti’s recommendations, with the company’s share price rising into positive territory. The long-term outlook for Cadence Design Systems is optimistic, as the company is expected to benefit from strong demand for its products and services. Furthermore, the company’s focus on innovation and its commitment to customer service is likely to be a continued source of growth. The company has delivered solid results in recent quarters, and its commitment to innovation and customer service makes it a good option for investors looking for a reliable and profitable stock.
Price History
This recommendation was in light of the stock opening at $181.4 and closing at $182.8, a 1.2% increase from its last closing price of 180.7. Its products and services help customers accelerate their design of integrated circuits, systems on chips and printed circuit boards, as well as software design. The company provides solutions for system and semiconductor companies, as well as equipment manufacturers, academia and research institutions. The company has a portfolio of products that are well suited to meet customer needs, and its products are widely used in the electronics industry. The analyst also believes that the company is well positioned to benefit from the increasing demand for its products and services due to the expanding electronics market.
The analyst stated that Cadence Design Systems has a strong balance sheet with a significant cash position and low debt levels. This provides the company with flexibility in terms of pursuing new opportunities and investments. Furthermore, the company has been able to maintain a strong return on equity despite the challenging market conditions. The company’s strong fundamentals and its growth potential make it an attractive option for investors looking to diversify their portfolios. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CDNS. More…
| Total Revenues | Net Income | Net Margin |
| 3.43k | 785.14 | 22.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CDNS. More…
| Operations | Investing | Financing |
| 1.19k | -697.54 | -415.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CDNS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.97k | 2.26k | 9.87 |
Key Ratios Snapshot
Some of the financial key ratios for CDNS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.2% | 27.6% | 30.5% |
| FCF Margin | ROE | ROA |
| 31.7% | 24.5% | 13.2% |
VI Analysis
VI’s app provides an easy and effective way to analyze CADENCE DESIGN SYSTEMS’ fundamentals, which allow investors to make informed decisions on their long-term investments. Our proprietary VI Line calculates the intrinsic value of CADENCE DESIGN SYSTEMS’ share at around $159.5. Currently, CADENCE DESIGN SYSTEMS stock is traded at $182.8, a fair price that is overvalued by 14.6%. This indicates that the company has potential to grow in the long term, despite its current overvaluation. Investors should take into account the company’s fundamentals to decide whether the perceived overvaluation is justified in the current market conditions.
While short-term market forces may influence the stock’s price, long-term investors should pay attention to the company’s financial performance, competitive landscape and potential for growth. By analyzing CADENCE DESIGN SYSTEMS’ fundamentals, investors can make a more informed decision about whether to invest in the company and benefit from its potential long-term growth. VI’s app provides a convenient and user-friendly way to analyze these fundamentals, giving investors the confidence to make sound decisions on their investments.
Peers
Cadence Design Systems Inc is one of the leading electronic design automation software providers. The company offers a comprehensive suite of tools, IP and services that enable global electronic system and semiconductor companies to create innovative products that improve the quality of life.
– Synopsys Inc ($NASDAQ:SNPS)
Synopsys Inc is a company that provides software and services to the semiconductor industry. The company has a market cap of 45.34B as of 2022 and a Return on Equity of 12.37%. The company’s products and services include design and verification, IP, manufacturing and yield management, and software security and quality solutions. Synopsys Inc was founded in 1986 and is headquartered in Mountain View, California.
– Goodpatch Inc ($TSE:7351)
Goodpatch Inc is a publicly traded company with a market capitalization of 5.45 billion as of 2022. The company has a return on equity of 8.49%. Goodpatch Inc is engaged in the business of developing and marketing software products and services. The company’s products and services include software development tools, application development platforms, and enterprise software solutions. Goodpatch Inc was founded in 2004 and is headquartered in San Francisco, California.
– Zuken Elmic Inc ($TSE:4770)
Zuken Elmic Inc is a Japanese company that specializes in electrical and electronic engineering software. The company has a market capitalization of 1.99 billion as of 2022 and a return on equity of 13.95%. The company’s products are used in a wide range of industries, including automotive, aerospace, communications, and consumer electronics. Zuken Elmic is a publicly traded company listed on the Tokyo Stock Exchange.
Summary
Cadence Design Systems is a strong investment opportunity for both short-term and long-term investors. A recent analyst report from Deutsche Bank recommends a ‘Buy’ rating on the stock, citing attractive growth potential and a strong financial position. The company has a diversified portfolio of products and services that cater to the needs of its customers in the electronics industry, making it a reliable source of steady revenue.
Additionally, Cadence boasts a strong balance sheet with low debt and strong cash flow, giving investors confidence in the company’s ability to weather economic downturns. All in all, Cadence Design Systems is an attractive option for investors looking for sustained growth potential.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
