Bank of America Securities analyst Vivek Arya has maintained their bullish stance on CDNS stock, giving a Buy rating on April 30.
Vivek Arya’s rating is based on a combination of factors that highlight Cadence Design Systems’ strong market position and growth potential. The company has demonstrated consistent performance with best-in-class margins and a focus on durable growth drivers. Arya notes the company’s conservative outlook for 2025, which, despite inline Q1 results, shows strong booking activities and potential upside from hardware shipments and improvements in macro conditions in China.
Additionally, Cadence Design Systems has effectively minimized tariff impacts by optimizing its manufacturing footprint, and its cloud hardware platforms remain unaffected by tariffs. The company also sees significant opportunities for expanding its market share with Intel and Samsung, which could lead to substantial incremental revenue over the next few years. Furthermore, Cadence’s core philosophy of focusing on sustainable and profitable growth, coupled with its leading EBIT margins, positions it well in the rising chip complexity sector, making it a compelling Buy recommendation.
According to TipRanks, Arya is a 5-star analyst with an average return of 9.0% and a 45.86% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Cadence Design.
In another report released on April 30, Deutsche Bank also maintained a Buy rating on the stock with a $320.00 price target.