Cadence Design Systems (CDNS) Stock Forecast & Price Target

$294.19 +1.69 (+0.58%)

As of 01/14/2025 04:00 PM Eastern

Cadence Design Systems - Analysts' Recommendations and Stock Price Forecast (2025)

MarketBeat calculates consensus analyst ratings for stocks using the most recent rating from each Wall Street analyst that has rated a stock within the last twelve months. Each analyst's rating is normalized to a standardized rating score of 1 (sell), 2 (hold), 3 (buy) or 4 (strong buy). Analyst consensus ratings scores are calculated using the mean average of the number of normalized sell, hold, buy and strong buy ratings from Wall Street analysts. Each stock's consensus analyst rating is derived from its calculated consensus ratings score (0 to .5 = Strong Sell, .5 to 1 = Sell, 1 to 1.5 = Reduce, 1.5 to 2.5 = Hold, 2.5 to 3.0 = Moderate Buy, 3.0 to 3.5 = Buy, >3.5 = Strong Buy). MarketBeat's consensus price targets are a mean average of the most recent available price targets set by each analyst that has set a price target for the stock in the last twelve months. MarketBeat's consensus ratings and consensus price targets may differ from those calculated by other firms due to differences in methodology and available data.

Consensus Rating

Moderate Buy

Based on 14 Analyst Ratings

Sell
1

Hold
1

Buy
12

Based on 14 Wall Street analysts who have issued ratings for Cadence Design Systems in the last 12 months, the stock has a consensus rating of "Moderate Buy." Out of the 14 analysts, 1 has given a sell rating, 1 has given a hold rating, and 12 have given a buy rating for CDNS.

Consensus Price Target

$329.50
12.00% Upside

According to the 14 analysts' twelve-month price targets for Cadence Design Systems, the average price target is $329.50. The highest price target for CDNS is $360.00, while the lowest price target for CDNS is $225.00. The average price target represents a forecasted upside of 12.00% from the current price of $294.19.

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CDNS Analyst Ratings Over Time

Type	Current Forecast 1/16/24 to 1/15/25	1 Month Ago 12/17/23 to 12/16/24	3 Months Ago 10/18/23 to 10/17/24	1 Year Ago 1/16/23 to 1/16/24
Strong Buy	0 Strong Buy rating(s)	0 Strong Buy rating(s)	0 Strong Buy rating(s)	0 Strong Buy rating(s)
Buy	12 Buy rating(s)	11 Buy rating(s)	9 Buy rating(s)	9 Buy rating(s)
Hold	1 Hold rating(s)	1 Hold rating(s)	1 Hold rating(s)	1 Hold rating(s)
Sell	1 Sell rating(s)	1 Sell rating(s)	1 Sell rating(s)	0 Sell rating(s)
Consensus Price Target	$329.50	$327.92	$323.27	$264.50
Forecasted Upside	12.00% Upside	4.60% Upside	22.90% Upside	-4.71% Downside
Consensus Rating	Moderate Buy	Moderate Buy	Moderate Buy	Moderate Buy

CDNS Analyst Recommendations By Month

The chart below shows how a company's ratings by analysts have changed over time. Each bar represents the previous year of ratings for that month. Within each bar, the sell ratings are shown in red, the hold ratings are shown in yellow, the buy ratings are shown in green, and the strong buy ratings are shown in dark green.

CDNS Price Targets by Month

The chart below shows how a company's share price and consensus price target have changed over time. The dark blue line represents the company's actual price. The lighter blue line represents the stock's consensus price target. The even lighter blue range in the background of the two lines represents the low price target and the high price target for each stock.

Cadence Design Systems Stock vs. The Competition

Type	Cadence Design Systems	Computer and Technology Companies	S&P 500
Consensus Rating Score	2.79	2.68	2.52
Consensus Rating	Moderate Buy	Moderate Buy	Moderate Buy
Predicted Upside	12.00% Upside	400.51% Upside	14.85% Upside
News Sentiment Rating	Positive News See Recent CDNS News	Positive News	Positive News

Recent Analyst Forecasts and Stock Ratings

Rating

Upside/Downside

Action

Time Frame

Start Date

End Date

Show

Export to Excel

Date	Brokerage	Analyst Name	Action	Rating	Price Target	Upside/Downside on Report Date
1/13/2025	Redburn Atlantic 5 of 5 stars	L. Brown Subscribe to MarketBeat All Access for the recommendation accuracy rating	Initiated Coverage	Buy	$350.00	+17.06%
12/13/2024	Mizuho 2 of 5 stars	S. Panigrahi Subscribe to MarketBeat All Access for the recommendation accuracy rating	Boost Target	Outperform ➝ Outperform	$325.00 ➝ $350.00	+13.56%
11/22/2024	Wells Fargo & Company 3 of 5 stars	G. Mobley Subscribe to MarketBeat All Access for the recommendation accuracy rating	Initiated Coverage	Overweight	$350.00	+14.24%
11/11/2024	Loop Capital Subscribe to MarketBeat All Access for the recommendation accuracy rating	G. Mobley Subscribe to MarketBeat All Access for the recommendation accuracy rating	Initiated Coverage	Buy	$360.00	+19.64%
10/29/2024	Rosenblatt Securities Subscribe to MarketBeat All Access for the recommendation accuracy rating		Reiterated Rating	Neutral ➝ Neutral	$280.00 ➝ $280.00	+1.36%
10/29/2024	Robert W. Baird Subscribe to MarketBeat All Access for the recommendation accuracy rating		Boost Target	Outperform ➝ Outperform	$332.00 ➝ $340.00	+34.51%
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10/29/2024	Needham & Company LLC Subscribe to MarketBeat All Access for the recommendation accuracy rating		Lower Target	Buy ➝ Buy	$320.00 ➝ $315.00	+24.62%
10/15/2024	Berenberg Bank Subscribe to MarketBeat All Access for the recommendation accuracy rating	N. Naing Subscribe to MarketBeat All Access for the recommendation accuracy rating	Initiated Coverage	Buy	$320.00	+13.42%
9/25/2024	Oppenheimer Subscribe to MarketBeat All Access for the recommendation accuracy rating		Initiated Coverage	Underperform	$225.00	-17.68%
8/6/2024	Piper Sandler Subscribe to MarketBeat All Access for the recommendation accuracy rating	C. Jeffries Subscribe to MarketBeat All Access for the recommendation accuracy rating	Upgrade	Neutral ➝ Overweight	$318.00 ➝ $318.00	+28.83%
6/27/2024	KeyCorp Subscribe to MarketBeat All Access for the recommendation accuracy rating		Boost Target	Overweight ➝ Overweight	$350.00 ➝ $355.00	+14.76%
5/30/2024	Bank of America Subscribe to MarketBeat All Access for the recommendation accuracy rating		Boost Target	Buy ➝ Buy	$330.00 ➝ $350.00	+21.06%
2/14/2024	Morgan Stanley Subscribe to MarketBeat All Access for the recommendation accuracy rating		Upgrade	Equal Weight ➝ Overweight	$260.00 ➝ $350.00	+18.91%
2/13/2024	Stifel Nicolaus Subscribe to MarketBeat All Access for the recommendation accuracy rating		Boost Target	Buy ➝ Buy	$300.00 ➝ $350.00	+14.16%
4/26/2023	Deutsche Bank Aktiengesellschaft Subscribe to MarketBeat All Access for the recommendation accuracy rating		Boost Target		$222.00 ➝ $230.00	+12.74%
1/17/2023	Atlantic Securities Subscribe to MarketBeat All Access for the recommendation accuracy rating		Upgrade	Neutral ➝ Overweight	$200.00	+18.16%

Analyst ratings data on MarketBeat is provided by Benzinga and other data providers. This page was last refreshed on Wednesday at 05:00 AM ET.

Should I Buy Cadence Design Systems Stock? CDNS Pros and Cons Explained

These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Tuesday, January 7, 2025. Please send any questions or comments about these Cadence Design Systems pros and cons to contact@marketbeat.com.

Cadence Design Systems
Bull Case

Here are some ways that investors could benefit from investing in Cadence Design Systems, Inc.:

Cadence Design Systems, Inc. reported earnings per share of $1.64 for the latest quarter, exceeding the consensus estimate of $1.44 by $0.20. This strong performance indicates robust profitability and effective management, which can attract investors looking for growth.
The company achieved a net margin of 23.87%, showcasing its ability to convert revenue into profit efficiently. A high net margin is often a sign of a well-managed company, making it an attractive investment.
With a return on equity of 28.49%, Cadence Design Systems, Inc. demonstrates effective use of shareholders' equity to generate profits. A high return on equity is appealing to investors as it indicates strong financial performance.
Recent revenue growth of 18.8% compared to the same quarter last year, reaching $1.22 billion, suggests that Cadence Design Systems, Inc. is expanding its market presence and could continue to grow, making it a potentially lucrative investment.
The current stock price is approximately $306.19, reflecting investor confidence and market interest in Cadence Design Systems, Inc. A strong stock price can indicate a healthy demand for shares, which is a positive sign for potential investors.

Cadence Design Systems
Bear Case

Investors should be bearish about investing in Cadence Design Systems, Inc. for these reasons:

Insider selling has been notable, with executives selling over 10,220 shares worth approximately $3,085,474 in the last ninety days. This could signal a lack of confidence in the company's future performance from those who are most familiar with its operations.
Despite strong earnings, the competitive landscape in the software and hardware sectors is intense, with many companies vying for market share. This competition could pressure margins and growth rates in the future.
Corporate insiders currently own only 1.99% of the company's stock, which may indicate a lower level of commitment from those who are in leadership positions. A lack of insider ownership can sometimes be a red flag for investors.
While revenue growth is promising, it is essential to monitor whether this trend can be sustained in the face of economic fluctuations and changing market demands, which could impact future performance.
The high valuation reflected in the current stock price may not leave much room for growth, making it a riskier investment if the company fails to meet or exceed market expectations in the coming quarters.

CDNS Forecast - Frequently Asked Questions

: According to the research reports of 14 Wall Street equities research analysts, the average twelve-month stock price forecast for Cadence Design Systems is $329.50, with a high forecast of $360.00 and a low forecast of $225.00.
: 14 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Cadence Design Systems in the last year. There is currently 1 sell rating, 1 hold rating and 12 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "moderate buy" CDNS shares.
: According to analysts, Cadence Design Systems's stock has a predicted upside of 12.00% based on their 12-month stock forecasts.
: Cadence Design Systems has been rated by research analysts at Loop Capital, Mizuho, Needham & Company LLC, Redburn Atlantic, Robert W. Baird, Rosenblatt Securities, and Wells Fargo & Company in the past 90 days.
: Analysts like Cadence Design Systems more than other "computer and technology" companies. The consensus rating score for Cadence Design Systems is 2.79 while the average consensus rating score for "computer and technology" companies is 2.68. Learn more on how CDNS compares to other companies.

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This page (NASDAQ:CDNS) was last updated on 1/15/2025 by MarketBeat.com Staff

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Cadence Design Systems (CDNS) Stock Forecast & Price Target