Opco starts Cadence Design at Underperform on long-term uncertainties

Oppenheimer initiated coverage of Cadence Design with an Underperform rating and $225 price target. The firm sees “too many long-term uncertainties” around the company’s core technology transitions. These have yet to be reflected in Cadence’s “premium valuation,” the analyst tells investors in a research note. In addition, Opco does not see Cadence outpacing wafer fab equipment over the next three years with low double-digit revenue growth. As such, the stock “looks rich” at current levels, the firm says.