Loop Capital Starts Cadence Designs (CDNS) at Buy

Loop Capital analyst Gary Mobley initiates coverage on Cadence Designs (NASDAQ: CDNS) with a Buy rating and a price target of $360.00.

The analyst comments "We are initiating coverage of Cadence Design (CDNS), one of two leading electronic design automation (EDA) suppliers, with a Buy rating and $360 PT. Semiconductor design companies, fabless or vertically integrated, represent the miners for chip-design gold. Some succeed while others fail to strike chip-design gold. We see increasing captive chip designs coming from system OEMs & hyperscalers, & China's number of chip designs is outpacing RoW as China attempts to foster a domestic chip industry. This fragmentation in chip design activity presents a long-term secular challenge for traditional merchant semiconductor companies. Investment into EDA/IP companies like CDNS is an ideal way to hedge against this trend in chip design redundancy. In other words, invest in the companies selling the pick & shovels to the miners."

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 $301.25 yesterday.

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