Cadence Design downgraded on weaker Q1 outlook at Rosenblatt

Rosenblatt downgraded Cadence Design to Neutral from Buy with a price target of $280, up from $265, post the Q4 report. While Cadence provided an initial fiscal 2024 guidance that was in-line with the firm’s prior 11.6% growth forecast, the near-term revenue outlook for Q1 was 10% below expectations, in part due to slower growth in the backlog, the analyst tells investors in a research note. The firm expects the stock to react negatively in the near term to the lower Q1 outlook and the weaker expected contribution from China in 2024.