Needham & Company Reiterates a 'Buy' on Cadence Designs (CDNS); Strong 3Q11 As Execution and Design Activity Trump Macro Headwinds

Needham & Company reiterates a 'Buy' on Cadence Designs (NASDAQ: CDNS) price target of $12.00.

Needham analyst says, "In 3Q11, Cadence continued its string of “beat and raise” quarters dating back to early 2010 with expected strength in emulation being complemented by strength in Digital and Mixed-Signal. While recent macro choppiness certainly bears watching, especially as it relates to historically economically sensitive emulation, the company’s execution and momentum continues to be impressive. Notwithstanding the increased guidance, we are maintaining our estimate of the company’s “normalized” earnings power at ~$0.80 for now (with a positive bias)."

"For 2011, our estimates increase to $1.14B/$0.49 from $1.125B/$0.45. 2012 increase to $1.22B/$0.66 from $1.20B/$0.63 PF."

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 $10.30 yesterday.

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