SAN JOSE, CA– Cadence Design Systems Inc. has been raised from “underweight” to “overweight” by J.P. Morgan Securities. The upgrade is attributed to the company’s scheduled restructuring and contract renewals, according to the securities service.

There is still plenty of work ahead for Cadence, though. Management needs to breathe life into a lagging product portfolio while addressing new competition in its analog strong hold. The company's workforce also needs to be restructured to combat a decreasing demand for EDA.

The upgrade, according to market analysts, could increase margin expansion up to 21% by 2010. Meanwhile, company shares look good for the free cash flow multiple and discounted free share flow basis.