Loop Capital raises Cadence Designs stock price target to $390 on strong results

Published 29/07/2025, 13:26
Loop Capital raises Cadence Designs stock price target to $390 on strong results

Investing.com - Loop Capital raised its price target on Cadence Designs (NASDAQ:CDNS) to $390.00 from $370.00 on Tuesday, while maintaining a Buy rating on the stock. The company, currently valued at $91.13 billion, is trading near its 52-week high of $335.16, with InvestingPro data showing an overall "GREAT" financial health score.

The price target increase follows Cadence’s June quarter revenue and earnings per share results that exceeded expectations, despite facing a revenue headwind of approximately $20 million to $25 million from a month-long U.S. export ban targeting China.

Loop Capital noted that the export ban affecting China has since been lifted, removing this temporary constraint on Cadence’s business operations.

Management has raised its full-year 2025 revenue guidance by $35 million, which exceeds the $15 million revenue beat reported for the second quarter of 2025.

The new price target assumes Cadence shares will trade at 53.0 times Loop Capital’s increased next-twelve-months estimates, reflecting both higher estimates and peer group multiples.

In other recent news, Cadence Design Systems reported robust second-quarter 2025 earnings, surpassing market expectations with an earnings per share (EPS) of $1.65, compared to the forecasted $1.57. The company also reported revenue of $1.28 billion, exceeding the anticipated $1.26 billion. Cadence raised its full-year revenue and EPS guidance, indicating confidence in its growth trajectory. Analysts have responded to these results with various adjustments to their price targets. Needham raised its price target to $390 while maintaining a Buy rating, citing strong earnings and guidance. Rosenblatt increased its target to $320, maintaining a Neutral rating, and noted the company’s 20% year-over-year revenue growth. KeyBanc set a new target of $405, highlighting this as Cadence’s best hardware quarter on record. Meanwhile, Piper Sandler downgraded Cadence to Neutral due to valuation concerns but still raised its price target to $355. These developments reflect the market’s mixed but generally positive response to Cadence’s financial performance.

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