Cadence Design, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Shi from Needham reiterated a Buy rating on the stock and has a $390.00 price target.
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Charles Shi has given his Buy rating due to a combination of factors including Cadence Design’s robust financial performance and promising growth outlook. The company reported strong earnings for the second quarter of 2025 and provided guidance for the third quarter and full year that exceeded market expectations. This positive outlook is bolstered by a notable increase in their full-year growth target, now projected at 13% for the year.
A significant driver of this optimism is the hardware segment, which has reached an all-time high in upfront revenue, both in absolute terms and as a percentage of total revenue. This suggests that the hardware cycle is gaining momentum and is expected to continue its strong performance through the second half of 2025 and into 2026. Consequently, Charles Shi has raised the price target for Cadence Design to $390, reinforcing the Buy recommendation.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $405.00 price target.
Based on the recent corporate insider activity of 97 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CDNS in relation to earlier this year.