Cadence closing higher following D.A. Davidson upgrade

|About: Cadence Design Systems, Inc. (CDNS)|By:, SA News Editor

Analyst Thomas Diffely has upgraded Cadence (CDNS +2.9%) to to Buy, arguing the chip design (EDA) software vendor is seeing "healthy design activity" in core markets, and has an attractive valuation (7.6x 2014E EV/EBITDA, below a peer group average of 8.5x).

Diffely has set a PT of $16, or 15x 2014E EPS after factoring net cash.

Cadence has traded in a relatively narrow range over the last 12 months.