SAN FRANCISCO, Aug. 31 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior electronics
analyst Daniel T. Niles and electronic design automation analyst
Arnab K. Chanda today upgraded Cadence Design Systems Inc. (NYSE: CDN) to a
Buy rating from a Long-Term Attractive. The company, headquartered in
San Jose, Calif., is the one of the largest suppliers of software tools and
professional services for the EDA industry.
"We are upgrading Cadence Design Systems to a Buy rating from a Long-Term
Attractive based on improving fundamentals and valuation," said Niles and
Chanda. "We believe that Cadence is making progress in transitioning the
company towards the new time-based subscription model which we believe will
improve visibility going forward.
"In our view, we are entering a period of strong growth for the EDA
industry, driven by a transition to deep-sub-micron technologies," said Niles
and Chanda. "In addition, we believe that we are at the beginning of a
multi-year recovery for semiconductors, which should improve the prospects for
design tool spending by semiconductor companies.
"At the current valuation, Cadence is roughly at mid-1994 levels, a 5-year
valuation low," said Niles and Chanda. "We believe the stock could be at
$20 in 12 months. We could see upside in product revenues in the second half
of 2000 and especially 2001, given the strong fundamental drivers of the EDA
industry."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is the leading full-service investment bank
focused exclusively on growth companies. For the first half of 1999, the firm
completed over 100 offerings, raising more than $15 billion in capital for
clients and is the leading investment bank for Internet M&A transactions. The
firm's 45 research analysts cover nearly 700 companies. Founded in
1978, BancBoston Robertson Stephens is the section 20 subsidiary of
BankBoston Corporation (NYSE: BKB). Together, BancBoston Robertson Stephens,
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employ 1,000 employees throughout the world with offices in Boston,
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information about the firm, please visit our Web site at http://www.rsco.com.
The following synopsis is qualified in its entirety by the more detailed
information contained in the full research report, including the discussion of
certain risks associated with an investment in this security contained in
"Investment Risks."
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted. In addition, opinions and estimates are
subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks." BancBoston Robertson Stephens from
time to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies. This information is not used in the preparation of
the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report.
BancBoston Robertson Stephens, its managing directors, its affiliates, and/or
its employees may have an interest in the securities of the issue(s) described
and may make purchases or sales while this report is in circulation.
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SOURCE BancBoston Robertson Stephens
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