Mizuho Securities analyst Siti Panigrahi has maintained their bullish stance on CDNS stock, giving a Buy rating on February 24.
Siti Panigrahi has given his Buy rating due to a combination of factors that highlight Cadence Design’s strong growth potential and strategic positioning in the industry. The company’s focus on long-term growth drivers, including the transformative impact of AI on electronic design automation (EDA) tools, positions it well to capitalize on industry trends. Despite some near-term uncertainties, particularly in China, Cadence’s management remains confident in its ability to achieve sustained double-digit growth.
Another key factor supporting the Buy rating is Cadence’s expansion into adjacent markets, which broadens its opportunities and underscores the resilience of its business model. The company’s focus on maintaining high profitability, with an impressive incremental operating margin, further strengthens its investment appeal. Additionally, the demand for increasingly complex chips and the shift toward domain-specific architectures in sectors like automotive and IoT are expected to drive continued growth, making Cadence an attractive investment opportunity.
In another report released on February 24, Bank of America Securities also maintained a Buy rating on the stock with a $350.00 price target.