Cadence Design stock price target raised to $405 from $358 at KeyBanc

Published 29/07/2025, 11:40
Cadence Design stock price target raised to $405 from $358 at KeyBanc

Investing.com - KeyBanc raised its price target on Cadence Design Systems (NASDAQ:CDNS) to $405 from $358 on Tuesday, while maintaining an Overweight rating on the stock. The company, currently valued at $91.13 billion, is trading near its 52-week high of $335.16. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The electronic design automation company reported second-quarter results that exceeded revenue expectations by $21 million, or 2%, according to KeyBanc. The firm noted this was Cadence’s best hardware quarter on record. The company maintains impressive gross profit margins of 85.86% and has demonstrated strong revenue growth of 19.55% over the last twelve months. InvestingPro data reveals 14 additional key insights about CDNS’s performance and valuation metrics.

Cadence is raising its 2025 outlook by more than the amount it beat expectations, despite facing a six-week temporary restrictions headwind from China. The net raise amounts to approximately $19 million.

The company’s backlog of $6.4 billion remained flat sequentially, performing better than expected as analysts had anticipated a slight contraction. KeyBanc indicated the backlog would have been even higher if China bookings hadn’t been excluded.

Cadence expects its backlog to expand and reach record levels by year-end, driven by strong renewal activity and broad-based strength across its business segments.

In other recent news, Cadence Design Systems reported strong second-quarter 2025 results, beating market expectations. The company achieved an earnings per share (EPS) of $1.65, surpassing the forecasted $1.57. Additionally, Cadence reported revenue of $1.28 billion, exceeding the anticipated $1.26 billion. This performance led the company to raise its full-year revenue and EPS guidance, indicating a positive outlook on its growth trajectory. Despite these strong results, Piper Sandler downgraded Cadence Design from Overweight to Neutral, citing valuation concerns. However, Piper Sandler did increase its price target for the company to $355 from $328. These developments highlight the mixed reactions from analysts despite the company’s robust financial performance.

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