Cadence Design gets mild lift as Deutsche Bank reiterates buy rating
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Cadence Design Systems (NASDAQ:CDNS) shares edged into positive territory Tuesday as Deutsche Bank analyst Gianmarco Conti could say "buy" enough regarding the software and system-on-a-chip tech company.
Conti said that on top of his "long-term fundamental" buy rating on Cadence's (CDNS) stock, he was also issuing a "short-term catalyst" buy rating on the shares. In other words, buy now, and buy later.
Conti said the reasons for his upbeat take on Cadence (CDNS) include "relatively unambitious" estimates for the company's revenue and operating margins when it delivers its next quarterly results on February 13. Currently, Wall Street analysts estimate Cadence (CDNS) will report revenue of $3.55B for the quarter, while the company itself estimates sales to be in a range of $3.53B to $3.55B.
Cadence (CDNS) has also said its operating margins should be in a range of 39.7% to 40.7% for the quarter that ended in December.
Conti said he expects Cadence (CDNS) will say it continued to see "traction" in its hardware revenue during the quarter.
Wall Street analysts and Seeking Alpha authors both have consensus buy ratings on Cadence's (CDNS) stock, while Seeking Alpha's Quant System, which historically outperforms the stock market, gives Cadence's (CDNS) stock a rating of hold.