Cadence Design price target raised to $320 from $315 at Needham

Needham raised the firm’s price target on Cadence Design to $320 from $315 and keeps a Buy rating on the shares. The company’s below-consensus Q1 outlook drove post-earnings weakness in the stock, but given its strong backlog and all-time record for quarterly bookings, the “reaction is wrong”, the analyst tells investors in a research note. Cadence Design’s vision to organically grow the system business has also “started to crystalize” and its operating margin is tracking towards high 40s by year-end, the firm added.