Transferring Coverage of Cadence; Raising Our Fair Value to $313 From $250

Cadence is a leading provider of software tools used by engineers to design semiconductor chips. This software is referred to as electronic design automation software. EDA solutions are indispensable to virtually every major semiconductor design company, and increasingly a growing number of “electronic systems” companies, meaning companies that design a product that uses semiconductors, such as modern automobiles. The semiconductor industry does not function without companies like Cadence in the background.