Cadence Design price target raised to $328 from $318 at Piper Sandler

Piper Sandler raised the firm’s price target on Cadence Design (CDNS) to $328 from $318 and keeps an Overweight rating on the shares. The firm acknowledges that $5.180B of revenue may seem at face value a negative read for Cadence, but thinks the implied low-teens ex-China growth may actually be viewed favorably. Considering Cadence ended the year with 13% backlog growth, implied first half of the year growth is very strong and even with 11.6% assumed growth, incremental margins are still in the low-50s; low-teens ex-China growth starts to look like a bullish starting point for guidance to kick off the year, Piper adds.