Cadence Design Systems (CDNS) Reports Strong 3Q Results despite challenging environment; RBC Capital Remains Positive
RBC Capital reiterated an Outperform rating on Cadence Designs (NASDAQ: CDNS), and raised the price target to $25.00 (from $23.00), following the company's 3Q15 earnings results. Despite the challenging semiconductor environment, Cadence delivered EPS upside driven by strong execution. CDNS reported Q3 results of $434M revenue and $0.28 EPS, compared to consensus of $429M and $0.26.
Mahesh Sanganeria commented, "Analyst Despite the challenging semiconductor environment, Cadence delivered EPS upside driven by strong execution. We believe the company is benefiting from its system enablement strategy and the shipment of new emulation platform can serve as a near-term catalyst. We do not expect industry consolidation to have any significant impact on CDNS. We increase our price target to $25 from $23 and maintain our Outperform rating."
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Shares of Cadence Designs closed at $21.35 yesterday.