Cadence Design Systems downgraded to "neutral"

10/25/07 - Cowen and Company

NEW YORK, October 25 (newratings.com) - Analyst Raj Seth of Cowen & Co downgrades Cadence Design Systems Inc (CDNS) to "neutral," while raising his estimates for the company.

In a research note published this morning, the analyst mentions that the company has reported its 3Q EPS ahead of and revenues in-line with the consensus. Cadence Design Systems has issued its EPS guidance for 4Q at $0.46, in-line with the consensus. During the quarter, the company shifted towards turns-driven business with 50% turns mix, the analyst says. The backlog visibility is now likely to decline and the company is expected to face increased pressure in executing on the pipeline for its turns-driven business, Cowen & Co adds.