Cadence shares fall as Q4 profit forecast misses estimates

Shares of electronic systems designing co Cadence CDNS.O RIC fall nearly 2.2% to $343.66 in premarket

Co forecasts fourth-quarter profit just shy of market estimates on Monday, as Sino-U.S. trade tensions threaten to hurt demand for its chip design software from the key market of China

J.P. Morgan raises its PT to $405 from $390; maintains an "overweight" stance on the stock, says co’s bookings and backlog are sharply higher, with more growth expected as demand for advanced chip design accelerates

Cadence’s investment in 3D solvers opens up a larger addressable market, and a shift toward more cyclically exposed names will further boost growth - JPM

Co reported third-quarter revenue of $1.34 billion, beating estimates of $1.32 billion

Average rating of 23 analysts is "buy"; median PT $395 - data compiled by LSEG

As of last close, stock is up nearly 17% YTD