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.

Several price targets were given for CDNS by the analysts covering the stock. The highest price target was 41, implying a possible profit of 10.78 percent. The most pessimistic analyst gave a price target of 32, which equates to a potential downside of -13.54 percent. It is crucial to not blindly accept any price targets or stock ratings, because many analysts have it in their best interest to give positive coverage of certain stocks.

In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -1.43 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is -1.43 percent. Meanwhile, fiscal year estimates have been revised upwards by 2.45 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 2.45 percent in FY estimates.

People are often interested in whether analysts were united in the direction of their revisions. Over the past month, 2 analysts increased their quarterly estimates, which can be compared to the 3 analysts that decreased their estimates. Over the same time period, 4 analysts revised their FY earnings estimates upwards, while 1 analysts made negative revisions to their fiscal year's estimates.

The growth rate of CDNS's earnings is estimated by analysts to be 14.66 percent. People on Wall Street often look at a company's PEG ratio. Investors like to see smaller values for the PEG ratio, as that can indicate whether the high price level of a stock is warranted by high growth. Wall Street investors typically prefer a PEG ratio to be smaller than 1, though it could be better to see where the ratio stands relative to peers in the industry. The PEG ratio of CDNS is 2.9.

CDNS has traded between a high of 37.51 and a low of 23.83 over the past year. Today's price is 55.31 percent above the 52-week low, 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.