Needham analyst Charles Shi lowered the firm’s price target on Cadence Design (CDNS) to $315 from $320 but keeps a Buy rating on the shares. The company’s Q3 results were “solid”, and while the outlook appears in line, the strong ramp for the second half of the year that was met with skepticism earlier has finally arrived as management promised, the analyst tells investors in a research note. The strong revenue run rate exiting 2024 is sustainable in 2025 because the hardware product cycle should last through 2025, the company’s IP fundamentals are improving, and China weakness in 2024 sets up an easy comp for next year, the firm added.
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