Cadence Design Systems: Still Find It Hard To Justify The Premium Valuation Multiple
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Cadence Design Systems, Inc. (CDNS) is recommended as a hold due to its high valuation despite strong growth potential. The company reported strong Q4 results but gave soft FY25 guidance, indicating decelerating growth and potential valuation risks.
February 22, 2025 | 5:00 am
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Cadence Design Systems is recommended as a hold due to its high valuation and soft FY25 guidance, despite strong Q4 results. The premium valuation compared to peers like Synopsys and ANSYS is hard to justify.
The article highlights that while CDNS has strong long-term growth potential, its current high valuation and soft FY25 guidance suggest potential risks. The premium valuation compared to peers is not justified given similar growth rates, leading to a hold recommendation.
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