Analyst Joseph Quatrochi from Wells Fargo maintained a Buy rating on Cadence Design and increased the price target to $405.00 from $365.00.
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Joseph Quatrochi has given his Buy rating due to a combination of factors including Cadence Design’s strong performance and optimistic future outlook. Despite facing challenges from China restrictions, Cadence managed to exceed expectations with its 2025 guidance, raising its revenue forecast by $50 million at the midpoint. This upward revision in guidance, coupled with the company’s ability to maintain a robust backlog, suggests a positive trajectory for future growth.
Furthermore, Joseph Quatrochi highlights the potential for growth in the second half of 2025, particularly with a cautiously optimistic view on the company’s prospects in China. The increased revenue and earnings per share estimates for the coming years, along with improved operating margins, reinforce the confidence in Cadence’s financial health. These factors, combined with a revised price target of $405, underpin the Buy rating for Cadence Design’s stock.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $390.00 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.