Cadence Design Systems Q4: Record Backlog, But The Stock Is Overvalued

Group 1 - The analyst downgraded Cadence Design Systems, Inc. (NASDAQ: CDNS) to "Sell" in December 2024, and since then, the stock price has underperformed [1] - Potential export restrictions to China were highlighted as a key risk in previous analyses of Cadence [1] - The analyst emphasizes a fundamental, bottom-up, long-term investment style, focusing on companies with strong growth potential and reasonable valuations [1] Group 2 - The analyst targets a 15% annual return in their portfolio, typically constructing it with 15-20 stocks to ensure diversification and risk management [1] - The investment strategy includes macro-driven sector weights and disciplined trading and valuations as key factors [1]