Vivek Arya, an analyst from Bank of America Securities, reiterated the Buy rating on Cadence Design. The associated price target remains the same with $375.00.
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Vivek Arya has given his Buy rating due to a combination of factors tied to Cadence’s strategic expansion and attractive valuation. He views the completed acquisition of Hexagon’s Design & Engineering unit as a meaningful boost to Cadence’s system design and analysis capabilities, even though it modestly depresses FY26 EPS before becoming accretive from FY27 onward.
He also highlights that the added revenue stream and longer‑term EPS uplift support a higher earnings base, justifying a $375 price objective at 40x CY27 earnings. In his view, Cadence remains the premier EDA name, trading below its own historical multiples and at a discount to the S&P 500 on a relative P/E basis, while still insulated from near‑term AI disruption risks in the core design automation market.
In another report released today, TipRanks – xAI also reiterated a Buy rating on the stock with a $327.00 price target.