JPMorgan analyst Sterling Auty views Cadence Design Systems' Q2 results as "very solid" with the intellectual property business the standout performer once again. The analyst raised his price target for the shares to $49 from $42 and keeps an Underweight rating on the name. The big news from the quarter is the announcement that Cadence is pushing forward with a new cloud initiative to offer its products on a hosted basis within AWS, Azure and GCP, Auty tells investors in a research note. He believes, however, that the exact growth and profit ramifications will not be identifiable until the company finalizes its pricing model with customers across all solutions.

Piper Sandler lowered the firm's price target on Cadence Design to $318 from $334 and keeps a Neutral rating on the shares. The firm notes the company reported solid Q1 results, but Q2 guide came below consensus on revenue and EPS. This was at odds with commentary noting a record bookings quarter, accelerating backlog growth and the FY24 revenue guide being raised by $10M at the midpoint.

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Sees FY24 revenue $4.56B-$4.62B, consensus $4.59B.

Pre-earnings options volume in Cadence Design is 1.7x normal with calls leading puts 3:2. Implied volatility suggests the market is anticipating a move near 4.4%, or $12.56, after results are released. Median move over the past eight quarters is 2.9%.