Cadence Designs (CDNS) PT Raised to $145 at Needham & Company as China Strength Carries into 2021

Needham & Company analyst Richard Valera raised the price target on Cadence Designs (NASDAQ: CDNS) to $145.00 (from $126.00) after the company reported another beat and raise quarter. The company issued above-consensus 2021 guidance calling for ~10% adj. revenue growth. China demand, appears sustainable, and may prove conservative, based on the current pipeline, and more broadly, strong design activity in verticals such as 5G, AI and hyperscale underpins a strong outlook for both EDA and IP.

The analyst reiterated the Buy rating, stating "we see the company's nascent Systems Analysis business, bolstered by the acquisition of NUMECA, as a likely meaningful driver of longer term incremental growth for CDNS. As such, we maintain our Buy rating and increase our PT to $145, or ~43x our new C'22 EPS estimate."

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