Needham & Company Maintains a 'Buy' on Cadence Designs (CDNS); 2Q11 is Another Healthy “Beat and Raise”; No Signs of Macro Headwinds To Date

Needham & Company maintains a 'Buy' on Cadence Designs (NASDAQ: CDNS) price target raised from $11.25 to $12.

Needham analyst says, "In 2Q11, Cadence continued its string of “beat and raise” quarters dating back to early 2010 with expected strength in emulation being complemented by surprising strength in Digital. While recent macro choppiness certainly bears watching, especially as it relates to relatively economically sensitive emulation, the company’s execution and momentum continues to be impressive. Based on increased guidance, we are increasing our estimate of the company’s “normalized” earnings power from ~$0.75 to ~$0.80. Applying a 15x multiple to these earnings results in a PT of $12...For 2011, our estimates increase to $1.125B/$0.45 from $1.10B/$0.40 PF EPS. 2012 increase to $1.20B/$0.63 PF
EPS from $1.18B/$0.57."

For more ratings news on Cadence Designs click here and for the rating history of Cadence Designs click here.

Shares of Cadence Designs closed at $9.41 yesterday.

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