KeyBanc lowered the firm’s price target on Cadence Design (CDNS) to $340 from $375 and keeps an Overweight rating on the shares amid the most recent China-related export restrictions. While the situation remains fluid, and the firm has received limited information, KeyBanc is maintaining its existing estimates until further clarification is provided. That said, its downside bear-case analysis yields a potential EPS impact of -95c in 2025 and -$1.74 in 2026 for Cadence. While the firm remains a “believer” that the EDAs have many multifaceted and durable drivers to continue supporting low double digits industry growth, KeyBanc does acknowledge imminent China-related downside risk.
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