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Stock impact report

Cadence Design Systems slips as Oppenheimer starts with Underperform rating [Seeking Alpha]

KLA Corporation (KLAC) 
Last kla corporation earnings: 2/4 04:05 pm Check Earnings Report
US:NASDAQ Investor Relations: ir.kla-tencor.com/investor-relations
Company Research Source: Seeking Alpha
Shares fell 1% in premarket trading. "Cadence is lagging this year, but historically has been a consensus long, outperforming both the SOX and S&P 500 by triple-digits over the past five years," analyst Edward Yang wrote in an investor note. "Initially, we'd hoped for an undervalued opportunity, but reluctantly find too many long-term uncertainties around core technology transitions, which have yet to be reflected in CDNS's premium valuation." Yang also noted that Cadence is unlikely to outpace the growth of the wafer fab equipment market, so its current valuation at 14.5 times enterprise value to revenue and 62 times estimated earnings is rich compared to stocks like KLA Corp. ( KLAC ), Lam Research ( LRCX ) and Applied Materials ( AMAT Over the longer-term, the risks for Cadence include the fact that its software is "most on-premise premise time-based licenses, which may shift to modern architectures," as well as the fact that emulation and prototyping is better suited to con Show less Read more
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