Look to Buy Cadence Designs (CDNS) on Weakness Post Q2, Needham & Company Says

Needham & Company analyst Richard Valera reiterated a Buy rating on Cadence Designs (NASDAQ: CDNS) and bumped his price target to $18.00 (from $16.00) following solid Q2 earnings and mixed guidance.

Valera commented, "DNS delivered mixed 2Q14 results as improving industry conditions and strong software bookings were offset by continued emulation pricing pressure, driving reduced EPS and cash flow expectations for '14. However, we expect release of the company's next-gen box some time in '15 will alleviate emulation margin pressure, while likely also providing a top line catalyst. As such, we increase our PT ($18 vs. $16 previously) on a slightly higher multiple. Given the shares' recent outperformance and proximity to our PT, we would look to buy on weakness."

The firm trimmed FY 2014 EPS from $0.95 to $0.94 and raised FY 2015 EPS from $1.06 to $1.08.

For an analyst ratings summary and ratings history on Cadence Designs click here. For more ratings news on Cadence Designs click here.

Shares of Cadence Designs closed at $17.50 yesterday.

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