Cadence Design upgraded to Perform from Underperform at Oppenheimer

Oppenheimer analyst Edward Yang upgraded Cadence Design (CDNS) to Perform from Underperform with a price target of $275, up from $225. The firm has been “skeptical for over a year” due to lack of AI monetization and disruption risks, but Nvidia’s (NVDA) $2B strategic investment in peer Synopsys (SNPS), while a significant financial endorsement of Cadence’s main rival, is also broadly supportive of legacy EDA and simulation ecosystem sentiment, the analyst tells investors. The firm makes no change to its estimates, but cites a higher multiple for its raised target and rating.