Why Cadence Design Systems Stock Crushed It on Thursday
Chip-making equipment specialist Cadence Design Systems (NASDAQ: CDNS) was targeted for a recommendation upgrade on Thursday, and investors eagerly leapt into the stock. It closed the day 6% and change higher, more than triple the percentage gain of the bellwether S&P 500 index.The company behind the upgrade was American banking powerhouse JPMorgan Chase. That morning JPMorgan pulled the lever on the upgrade; it now rates Cadence an overweight (i.e., buy), one peg up from its previous neutral. The bank also cranked the price target higher to $325 per share from the preceding $300. Much of the change has to do with Cadence's recent share price weakness, according to reports. The bank's analysts pointed out that at the reduced level the company trades at a forward price-to-earnings (P/E) ratio of 34. As such, it's teasing the low end of its five-year range.Continue reading
Chip-making equipment specialist Cadence Design Systems (NASDAQ: CDNS) was targeted for a recommendation upgrade on Thursday, and investors eagerly leapt into the stock. It closed the day 6% and change higher, more than triple the percentage gain of the bellwether S&P 500 index.
The company behind the upgrade was American banking powerhouse JPMorgan Chase. That morning JPMorgan pulled the lever on the upgrade; it now rates Cadence an overweight (i.e., buy), one peg up from its previous neutral. The bank also cranked the price target higher to $325 per share from the preceding $300.
Much of the change has to do with Cadence's recent share price weakness, according to reports. The bank's analysts pointed out that at the reduced level the company trades at a forward price-to-earnings (P/E) ratio of 34. As such, it's teasing the low end of its five-year range.