Analyst Ratings for Cadence Design Systems Inc. (CDNS)

Updated: 2017-07-29

Analysts covering Cadence Design Systems Inc. (NASDAQ:CDNS) have given it a consensus rating of Overweight. About 30 days ago, CDNS was issued an average rating of Hold.

A buy rating was issued by 4 analysts, 0 issued an overweight rating, 5 gave a hold rating, 0 gave an underweight rating, and 1 issued a sell rating. Today, there are 1 more analysts optimistic about the company future as compared with 90 days ago. Meanwhile, the number of analysts pessimistic about the company has increased by 0.

CDNS was given price targets by several analysts. The most optimistic price target was 41, which equates to a potential upside of 10.78 percent. The most pessimistic analyst gave a price target of 32, implying potential capital losses of -13.54 percent. Many analysts are not unbiased in their coverage of stocks, including price targets and stock ratings, so care must be taken in interpreting numbers released by them.

In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -1.43 percent. That number becomes -1.43 percent if we expand the time horizon to include the past 3 months instead of just one. Over the past 30 days, FY earnings estimates have also changed upwards by 2.45 percent. If we look at the last 90 days instead, we find a net average change of 2.45 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 2 analysts made positive revisions to their quarterly estimates over the past month, while 3 analysts made negative revisions. Over the same time period, 4 analysts revised their FY earnings estimates upwards, while 1 analysts decreased their estimates.

CDNS has an estimated earnings growth rate of 14.66 percent as forecasted by analysts. It's possible to gain additional insight about growth valuation of a company by looking at the PEG ratio. Smaller PEG ratios are desirable, because people typically see that as an indicator of higher growth relative to stock price. Many investors consider PEG ratios between 0 and 1 as preferrable, though it could be better to see where the ratio stands relative to peers in the industry. CDNS has a PEG ratio of 2.9.

In the last 52-weeks, CDNS has achieved a high of 37.51 and a low of 23.83. The current market price is above the trailing year's low by 55.31 percent, and below the high by 1.33 percent. CDNS has a price/earnings ratio of 42.54. Investors typically compare the P/E ratio to a company's peers in the industry. The CDNS value stock report compares CDNS to some of its peers using value stock charts. The stock has a market capitalization of $10.36 billion. CDNS's next earnings release will be on 0000-00-00, which is days away.