Based on the recent data and analysis, here's a concise assessment of CDNS stock:
Technical Analysis
The stock is currently trading at $297.62, showing a consolidation pattern near its 20-day moving average of $302.30. The RSI of 48.05 indicates a neutral momentum, neither overbought nor oversold. The stock has found support at its 200-day moving average.
Growth & Fundamentals
CDNS is projected to deliver strong growth with:
- 13% revenue growth expected in both 2024 and 2025
- 15% earnings growth in FY24 and 16% in FY25
- Revenue expected to reach $5.23 billion by FY25 from $4 billion in FY23
Analyst Consensus
Recent analyst coverage is notably positive:
- 14 out of 18 analysts rate CDNS as "Strong Buy"
- Average price target suggests ~20% upside potential
- Multiple firms including Redburn Atlantic, Mizuho, and Wells Fargo have set price targets around $350
Buy Signal Indicators
- Trading 10% below recent highs
- Strong support at 200-day moving average
- Consistent earnings beats for five consecutive years
- Critical position in AI and semiconductor design ecosystem
Based on the technical setup, strong fundamentals, and positive analyst sentiment, CDNS appears to be in a favorable position for buying at current levels, particularly with upcoming earnings on February 18, 2025.